Property builder Megaworld Corp. said net income last year surged on strong earnings from its key property businesses and a non-recurring gain, a stock exchange filing on Wednesday showed.
Megaworld, a unit of businessman Andrew Tan’s Alliance Global Group Inc., said net income in 2014 hit P21.6 billon, more than double the 2013 level.
Last year’s income was bolstered by a P12.1-billion non-recurring gain mainly booked from the acquisition of shares in affiliate Global-Estate Resorts Inc. (Geri) and the sale of shares in another affiliate, Travellers International Hotel Group Inc., operator of integrated casino Resorts World Manila.
Removing that non-recurring income, the company said profit in 2014 ended at P9.4 billion, up 14 percent from 2013.
Megaworld said consolidated revenues last year rose by 15 percent to P41 billion while citing strong contributions from its property sales and rental income.
It said real estate sales increased to P24.6 billion while rental income grew by 17 percent to P7 billion.
“Last year was a milestone for us. With Megaworld celebrating its 25th anniversary, we raked in record earnings and managed to grow our land bank to over 4,000 hectares. Our income growth last year was driven by both real estate sales and rental income,” Tan said in a statement on Wednesday.
“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,” he added.
Tan noted that the company’s rental income portfolio had likewise been growing in step with expectations.
“Continued growth in our office and mall leasable space will provide the catalyst for exceeding P10 billion in rental income in 2016,” he said.
“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,” Tan said.