Megaworld nets P9.3B

Tycoon Andrew Tan-led Megaworld Corp. grew net profit in the first nine months by 11 percent year-on-year to P9.27 billion as the property developer unlocked higher recurring earnings from the expansion of its commercial and office portfolio.

Consolidated revenues rose by 5 percent year-on-year to P35.26 billion during the first nine months, Megaword reported to the Philippine Stock Exchange on Wednesday.

The company’s rental income expanded by 15 percent year-on-year in the first three quarters to P7.41 billion, pulling up the company’s bottomline.

“Our fundamentals remain strong and we are happy to see that our anticipated aggressive growth in our rental businesses continues. What we are now witnessing is the transition of Megaworld from being just a builder into becoming a landlord. This means that the company will be insulated from any cyclicality from the residential business while having steady or even higher growth moving forward,“ Megaword treasurer Francis Canuto said in a press statement.

Rental income came from the company’s expanded office and commercial retail portfolio. During the past months, Megaworld opened new malls and commercial centers in its various integrated urban townships, particularly Uptown Bonifacio, McKinley Hill,Forbes Town Center, Iloilo Business Park, The Mactan Newtown, and Twin Lakes; and new office towers in McKinley West, Uptown Bonifacio, The Mactan Newtown,and Iloilo Business Park.

Megaworld also expanded its hotel portfolio with the introduction of another local hotel brand, Belmont Hotel, which launched its first hotel in Newport City late last year, in addition to its homegrown Richmonde Hotels in Eastwood City, Ortigas and Iloilo.