Megaworld nets P9.27B as firm turns ‘landlord’

Tycoon Andrew Tan-led Megaworld Corp. grew its 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 also rose 5 percent year-on-year to P35.26 billion by the end ofSeptember, Megaword reported to the Philippine Stock Exchange on Wednesday.

The company’s rental income expanded by 15 percent year-on-year to P7.41 billion during the same period in review, pulling up the company’s bottom line.

“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 few 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. This is in addition to its homegrown Richmonde Hotels in Eastwood City, Ortigas and Iloilo.

Earlier this year, Megaworld unveiled its 21st integrated urban township, the 140-hectare Maple Grove in General Trias, Cavite. The development’s masterplan is to have an eclectic mix of residential, office, retail, and institutional components in an environment-friendly community.

Another vast township is scheduled to be launched before year-end, bringing the company’s number of townships across the Philippines to 22 this year.

Megaworld’s township developments started with Eastwood City in Quezon City (18 hectares). The success of this first project was then replicated in, among others, Newport City in Pasay City (25 hectares); McKinley Hill (50 hectares), McKinley West (34.5 hectares), Uptown Bonifacio (15.4 hectares) and Forbes Town Center (5 hectares), all in Fort Bonifacio; The Mactan Newtown in Cebu (30 hectares); Iloilo Business Park (72 hectares) and Sta. Barbara Heights (173 hectares), both in Iloilo; Boracay Newcoast in Boracay Island (150 hectares); Twin Lakes in Tagaytay (1,200 hectares); ArcoVia City in Pasig City (12.3 hectares); Southwoods City in the boundaries of Cavite and Laguna (561 hectares); and Davao Park District in Lanang, Davao City (11 hectares).