Megaworld Corp., the property development arm of tycoon Andrew Tan, said Wednesday net income increased 12 percent in 2016 to P11.63 billion from P10.39 billion in 2015, led by a double-digit growth in rental revenues.
Megaworld said in a disclosure to the stock exchange consolidated revenues rose 4 percent to P46.74 billion from P44.81 billion in 2015, as rental revenues climbed 15 percent to a record P10.01 billion from P8.73 billion.
The company did not provide figures for real estate sales.
“Megaworld achieved another milestone last year as we breached the P10-billion mark for our rental revenues. We have achieved our targets across the board as we have steadily grown and expanded our core businesses,” Megaworld treasurer Francis Canuto said.
“Township development remains to be a key strength of our company and we have focused on strengthening the various components of our townships on top of our residential businesses, such as offices, malls and commercial developments as well as hotels,” Canuto said.
Megaworld said cost management programs led to a modest 2-percent growth in costs and expenses at P35.1 billion in 2016 from P34.4 billion in 2015.
“Last year, we became successful in introducing another concept in real estate development which we call the ‘integrated lifestyle community.’ This year, we hope to add more developments under this category as we activate some of our remaining raw lands across the country that have good potential for leisure and tourism,” Canuto said.
Megaworld earlier introduced Eastland Heights, its first ‘integrated lifestyle community’ expanding 640 hectares on the mountains of Antipolo, Rizal.
The property firm raised P12 billion from issuance of fixed rate bonds last month. Proceeds fwill be used to finance development of four township projects.
Megaworld budgeted P60 billion for 2017 capital expenditures primarily to accelerate developments within existing integrated township projects and acquire more properties for landbank.