Megaworld nets P6.69B

Andrew Tan. INQUIRER FILE PHOTO

Tycoon Andrew Tan-led property developer Megaworld Corp. booked an 11-percent year-on-year increase in first semester net profit to P6.69 billion on the back of higher recurring earnings from its leasing portfolio.

Megaworld’s rental business – which includes leasing of space in office, malls and commercial centers – grew revenues by 20 percent year-on-year to P5.83 billion this year.

Residential revenues, on the other hand, were steady at P16.77 billion during the period, the company said in a regulatory filing on Thursday.

“It has been a strong first half for Megaworld as we continue the trajectory of our rental income while maintaining revenues for our residential business. Across businesses, there is an indication that we will continue our double digit growth until the end of the year,” Megaworld senior vice president and treasurer Francis Canuto said in a press statement.

Megaworld breached the one-million square meter mark in total leasable space last year. Office space inventory stood at 851,000 square meters while commercial and retail spaces reached 273,000 square meters.

“Megaworld remains to be the largest office developer and lessor in the country. We are well-positioned to retain this leadership as we are on-track to surpass the one-million square meter mark in office space inventory alone by the end of this year,” Canuto said.

The company also reported a ramp-up in its hotel business, where earnings rose by 10 percent year-on-year to P648-million. During the second quarter, the company launched its third homegrown hotel brand in Boracay Newcoast, the 559-room Savoy Hotel Boracay, which pitches the “first-ever party pool arena” in the country.

“On the long term, we see our hotel operations to be a major contributor to our growth as we continue accelerate our hotel developments to support the country’s tourism industry. For Megaworld group alone, we hope to complete an additional 3,500 rooms in our hotel portfolio in the next five years,” Canuto said.

Megaworld currently has a roster of 22 integrated urban townships and integrated lifestyle communities across the Philippines.