Property firm Megaworld Corp. posted a core net profit of P10.4 billion last year, about 10.58 percent higher than the previous year excluding large one-time gains.
The core profit took out P181 million in non-recurring gain for 2015 and another P12.16 billion in one-time gain that bloated the comparative level in 2014 when property units were consolidated, the company said in a statement.
Including non-recurring items, net profit last year slid to P10.58 billion from a record-high of P21.3 billion in net profit attributable to equity holders of parent firm in 2014.
The non-recurring gains booked in 2014 were a result of the consolidation of real estate companies. Megaworld bought the 49.2-percent stake in Global Estate Resorts Inc. (Geri) held by parent firm Alliance Global Group Inc., initially raising its interest to 74.96 percent and further increasing it to 80.4 percent after the tender offer to minority shareholders.
On a recurring basis, Megaworld’s core profit breached the P10-billion mark for the first time.
“We already have a strong roster of townships across Luzon, Visayas and Mindanao that are backed by adequate landbanking and carefully-thought masterplans. We have already mastered the art of township development. What we want to put focus on now is how to further grow our rental portfolio, which is integral to being a township developer. Malls and offices are key components of an urban township,” says Francis Canuto, chief finance officer at Megaworld.
Megaworld’s consolidated revenues, excluding non-recurring gains, grew by 9.37 percent last year to P44.81-billion. It said each of its core businesses—residential, rental and hotel operations—had posted double-digit growth.
The leasing business was noted as the fastest growing business segment in 2015, as rental income expanded by 23.46 percent. Leasing income from malls, commercial centers, and offices reached P8.73 billion in 2015. Doris Dumlao-Abadilla