Office landlord Megaworld Corp. reported a 29-percent jump in net income to P1.01 billion in the first quarter from P786 million in the same period last year.

Megaworld said the growth was driven by its two main business segments: middle-income residential developments, and office developments for business process outsourcing firms (BPO).

“Our market-oriented strategy and single-minded approach to excel in all our business segments have provided the company with a strong platform to sustain our growth,” said Andrew Tan, Megaworld chairman and chief executive officer.

“We have reached another milestone as this is the first time in our history that we have breached P1 billion in net profit for a single quarter,” added Tan.

Total revenues rose 63 percent during the first three months to P4.67 billion from P2.86 billion in the same period last year, driven by real estate sales, which grew 79 percent to P3.31 billion from P1.85 billion.

In February 2008, Megaworld pre-launched three new residential condominium projects with a total sales value of more than P9 billion. These projects are One Central at the Makati central business district, Parkside Villas at Newport City in Pasay City and Morgan Executive Suites at McKinley Hill in Taguig City.

“We believe that the property market still has a lot of room to grow and we continue to be responsive to the demands of our buyers,” said Tan.

Rental income rose 59 percent to P333.53 million from P209.20 million last year largely from BPO office spaces and retail developments. The company expects to complete about 104,000 square meters of BPO space this year and about 40,000 sq. m. of retail space with pre-leasing reaching 60 percent and 80 percent, respectively. These developments are expected to boost rental income further starting next year.

Several new BPO office buildings slated for completion this year are E-Commerce Plaza at Eastwood City, Two and Three World Square at McKinley Hill, One Campus Place at McKinley Hill and Newport Corporate Plaza at Newport City. On the retail side, Megaworld is expected to complete its Eastwood City Mall by end of 2008.

Megaworld’s subsidiary, Empire East Land Holdings Inc., was fully consolidated into the accounts of the company starting this year.

Megaworld increased its stake in Empire early this year to 59.8 percent from 45.2 percent.

Empire East registered a net income of P58.5 million in the first quarter this year, up five percent from P55.7 million in the same period last year.