Property developer Megaworld Corp. said it expects to maintain its double-digit growth in revenues in 2024 on strong demand for residential and office projects.
The company said its hotel and mall businesses also continue to recover from the impact of the pandemic.
Megaworld investor relations head Andy Dela Cruz said during the PSE Investor Day 2023 virtual forum the group planned to maintain its aggressive project launches across businesses over the next three years.
“We are confident we will be able to sustain performance going to the year end and for most of our core businesses it is looking to very positive as well as next year,” Dela Cruz said.
Dela Cruz said the company continued to see strong demand for residential projects, both in Metro Manila and in the provinces which helped grow its reservation sales at a faster pace.
He said the high tenant retention and rent escalations of its office projects would enable Megaworld to continue growing its revenues amid market headwinds.
The group also expects rental income from its lifestyle malls to improve sequentially as operational occupancy improves and hotel revenues expected to grow beyond pre-pandemic levels due to large pick up from tourists and MICE (meetings, incentives, conferences and exhibitions) activities.
Megaworld plans to add 209,000 square meters (sq. m.) of office leasable space and 154,000 sq. m. of mall leasable space over the next three years.
It also plans to add 3,533 hotel room keys between 2023 and 2028, the biggest of which is the 1,500-room Grand Westside Hotel in Paranaque City which is slated to open before the end of the year.
Dela Cruz said Megaworld project launches for 2023 would hit P70 billion this year, higher than the initial target of P60 billion amid robust demand.
It is also on track to achieve its target P130 billion in reservation sales and P55 billion in capital expenditures for 2023, he said.