Megaworld nets P11.6B, up 12%

Tycoon Andrew Tan-led property developer Megaworld Corp. grew its recurring net profit by 12 percent to P11.63 billion last year, driven mainly by an increase in the earnings of its leasing portfolio.

The earnings reported excluded non-recurring items, particularly P82 million in one-time gains in 2016 and the P181-million non-recurring gains in 2015.

In a disclosure to the Philippine Stock Exchange yesterday, Megaworld said rental revenue rose by 15 percent last year to P10.01 billion, an all-time high for the company.

“Megaworld achieved another milestone last year as we breached the P10-B mark for our rental revenue. We have achieved our targets across the board as we have steadily grown and expanded our core businesses,” Megaworld treasurer Francis Canuto said.

“Township development remains to be a key strength of our company and we have focused on strengthening the various components of our townships on top of our residential businesses, such as offices, malls and commercial developments as well as hotels,“ Canuto added.

Megaworld’s consolidated revenue, excluding non-recurring gains, grew by 4 percent year-on-year last year to P46.74 billion.

The company did not disclose earnings from the residential development segment.

With cost management programs, expenditures grew by a modest 2 percent to P35.1 billion. Operational expenses rose by 5 percent, slower than the 7 percent growth in the previous year.

“Last year, we became successful in introducing another concept in real estate development which we call the ‘integrated lifestyle community.’ This year, we hope to add more developments under this category as we activate some of our remaining raw lands across the country that have good potential for leisure and tourism,” Canuto added.

In the last 27 years, Megaworld has put up integrated urban townships across the country that include: Eastwood City in Libis, Quezon City, (18.5 hectares); Newport City in Pasay City (25 hectares); McKinley Hill (50 hectares), McKinley West (34.5 hectares), Uptown Bonifacio (15.4 hectares) and Forbes Town (5 hectares), all in Fort Bonifacio, Taguig City; The Mactan Newtown in Lapu-Lapu City, Cebu (30 hectares); Iloilo Business Park in Mandurriao, Iloilo City (72 hectares); Sta. Barbara Heights in Sta. Barbara, Iloilo (173 hectares); Boracay Newcoast in Boracay Island (150 hectares); Twin Lakes in Alfonso, Batangas near Tagaytay (1,300 hectares); ArcoVia City in Pasig City (12.3 hectares); Southwoods City in the boundaries of Cavite and Laguna (561 hectares); Davao Park District in Lanang, Davao City (11 hectares); Alabang West in Las Piñas City (62 hectares) and Suntrust Ecotown in Tanza, Cavite (350 hectares). —DORIS DUMLAO-ABADILLA