Megaworld posts P22-b profit
Megaworld Corp., the biggest lessor of office spaces in the Philippines, booked a net income of P21.6 billion in 2014, up 139 percent from a year ago, boosted by a one-time gain from the consolidation of the group’s property units.
Megaworld said in a disclosure to the stock exchange Wednesday the profit included P12.1 billion in non-recurring gain from the consolidation of Global Estate Resources Inc., Empire East Land Holdings Inc. and Suntrust Properties Inc. into the parent firm.
Without the non-recurring gain, Megaworld’s income rose 14 percent to P9.4 billion last year.
Consolidated revenues, excluding non-recurring gain, climbed 15 percent to P41 billion with real estate sales increasing 16 percent to P24.6 billion from a year ago while rental income grew 17 percent to P7 billion.
“Our income growth last year was driven by both real estate sales and rental income. We have a more diversified real estate sales mix that is propelled by our integrated urban township developments in Metro Manila, Cebu and Iloilo as well as tourism-related projects in Tagaytay and Boracay,” said Megaworld chairman and chief executive Andrew Tan.
“In the meantime, our rental income is growing in line with our expectations. Continued growth in our office and mall leasable space will provide the catalyst for exceeding P10 billion in rental income in 2016. Last year also saw the consolidation of Global-Estate Resorts, Inc., Empire East Land Holdings, Inc., and Suntrust Properties, Inc. under Megaworld. This enabled us to strengthen our land bank nationwide,” he added.
Tan expects the company to maintain a double-digit net income growth every year starting in 2015 on the back of a stronger and bigger township portfolio.
Megaworld plans to launch five new township projects in 2015. Two are located in Bacolod, namely the 34-hectare property that used to be Bacolod-Murcia Milling Co,. and the 50-hectare property along the new Circumferential Road on the boundary of Talisay City and Bacolod City.
Megaworld in 2014 launched five townships, namely the Woodside City in Pasig City (12.3 hectares); Southwoods City in the boundaries of Cavite and Laguna (561 hectares); Davao Park District in Lanang, Davao City (11 hectares); Alabang West in Las Piñas City (62 hectares); and Suntrust Ecotown in Tanza, Cavite (350 hectares).
The company is launching at least 20 new malls and commercial centers in its existing and new townships over the next five to eight years to boost rental income.