Construction and property developer D.M. Wenceslao & Associates Inc. said Tuesday net income climbed 42 percent in the first half to P969.8 million from a year ago, on strong leasing revenues.
D.M. Wenceslao said in a disclosure to the stock exchange first-half revenues reached P1.19 billion, of which 80 percent came from recurring sales following the completion of a new office building.
Land rentals went up 5 percent to P482.2 million, while rentals of buildings and other revenues related to leasing expanded 70 percent to P351.9 million and P127.9 million, respectively.
Residential unit sales increased 6 percent to P119.5 million, while construction revenue rose 19 percent to P114.5 million.
“Strong execution from our marketing and construction teams is accelerating momentum across our businesses. We have completed our third commercial office building ahead of schedule and within budget. This early delivery added over 30,000 square meters of leasable gross floor area which was fully leased out as of the end of 2017,” D.M. Wenceslao chief executive Delfin Angelo Wenceslao said.
The company started construction of an office building in the first half that will have 68,980 square meters of leasable gross floor area. Slated for completion by 2021, 8912 Asean Ave. is the company’s largest office project to date.
The company said construction of condominium tower, Pixel Residences, remained on track. The project is slated for completion by 2019.
“We have a clear set of strategies centered around portfolio expansion through a combination of land and commercial leasing and residential sales growth,” Wenceslao said.
“We are continuing to ramp up the business”•strategically and with a long-term mindset”•while also taking decisive action that could produce meaningful returns to our shareholders in the quarters and years ahead,” he said.
The group had total leasable gross floor area of 89,914 sqm as of end-June, up 52 percent from the same period last year. Leased land area expanded 3 percent to 55,418 sqm.