Property developer Megaworld Corp. said Monday its board is evaluating if it will declare cash dividends this year and continue with the share buyback program amid cash preservation measures to survive the pandemic.
Megaworld chief strategy officer Kevin Tan said during the virtual annual stockholders’ meeting the company started protecting cash by reducing capital expenditures to P36 billion from an initial target of P60 billion, deferring some projects and streamlining operations.
Tan said that aside from preserving cash, Megaworld was also boosting its e-commerce platform aimed at helping tenants in malls and commercial centers. It is also looking at more digital-related projects.
The company said in March it had a P5-billion share buyback program to be implemented over a period of two years.
Tan said despite the significant impact of the pandemic on the tourism industry, the company remained keen on investing and expanding its hotel portfolio in Parañaque, Cebu and Boracay.
He said it would prioritize projects on residential development that it committed for completion and be opportunistic toward new residential launches depending on market demand.
Megaworld generated P38 billion worth of reservation sales, most of which was booked via online in the first half. The group will also continue to build its office portfolio which remained resilient despite the health crises.
Megaworld is targeting to have 1.4 million square meters of office leasable space by end-2020, up from 1.3 million as of end-2019.
Megaworld chairman and chief executive Andrew Tan said the company was ready to bounce back as it “adjusts to the new demands of the diverse market.”
“Our strong financial standing puts us in an exceptionally good position to weather the crisis and take advantage of the opportunities that will arise once recovery begins. The crisis also served to highlight the value of our offerings,” Tan said.
The share price of Megaworld fell 2.28 percent Monday to close at P3.