Tycoon Andrew Tan-led property developer Megaworld Corp. posted P8.3 billion in attributable net profit in the first semester, up by 16 percent year-on-year due to higher earnings from residential development and rental portfolio.
Excluding a nonrecurring gain of about P189 million, Megaworld saw a 15-percent year-on-year increase in first semester earnings over year-ago level as residential, office and mall leasing and hotel segments posted double-digit growth.
Consolidated revenue went up by 18 percent year-on-year to P31.7 billion in the first half, of which the residential business accounted for 63 percent. The rental and hotel operations accounted for 26 percent and 4 percent of total revenue, while 7 percent accounted for noncore revenues.
“The current economic landscape is quite favorable so we continue to be optimistic on the remaining five months of 2019. Interest rates are on a downtrend, which is a very positive news for our residential business. Vacancies in both office and commercial segments are on an all-time low, and we don’t see this changing in the near future due to the robust sign-ups we are seeing from big companies and business owners. Tourism growth, likewise, remains strong, and this should continue to fuel our blossoming hotel operations especially that we are opening more hotels henceforth,” Megaworld chief strategy officer Kevin Tan said in a disclosure to the Philippine Stock Exchange.
Including earnings attributable to noncontrolling interest, Megaworld’s net profit went up by 18 percent year-on-year to P8.9 billion in the first semester.
Revenue from residential sales improved by 11 percent year-on-year to P20.2 billion during the first six months.
Megaworld’s leasing revenues from shopping malls and offices grew by 20 percent year-on-year to P8.1 billion in the first six months.
By yearend, the company is expected to complete more than 230,000 square meters of leasable space from its two rental brands of Megaworld Premier Offices and Megaworld Lifestyle Malls all over the country.
The hotel segment was the fastest growing during the first half, with revenue surging by 80 percent year-on-year to P1.3 billion. —DORIS DUMLAO-ABADILLA