Property and infrastructure developer DM Wenceslao & Associates Inc. (DMW) grew its net profit at end-September by 11 percent year-on-year to P1.65 billion as higher revenues booked from residential development supplemented steady earnings from its rental portfolio.
Revenues rose by 21 percent to P1.94 billion during the period as the residential segment gathered speed, DMW disclosed to the Philippine Stock Exchange.
Of the total, 76 percent consisted of recurring income, including rentals from land, buildings and other revenues such as common use service area fees.
By business segment, leasing of land increased by 2 percent to P736.8 million for the nine-month period. Rentals of buildings and other revenues related to leasing grew by 7 percent and 10 percent to P594.3 million and P142.2 million, respectively.
On the other hand, revenues from the sale of residential condominium units surged by nearly six-fold year-on-year to P422.7 million.
“On the operations front, we are on pace to hand over our first residential project, Pixel Residences, to customers as scheduled. We also continue to market MidPark Towers which is benefiting from the increased activity as nearby businesses open,” DMW chief executive Delfin Angelo Wenceslao said.
Indicative of revenues to come, the pre-selling of MidPark Towers amounted to P5.8 billion at end-October from P4.8 billion reported in July.
On the leasing portfolio, the office segment saw a consolidated occupancy rate of 98 percent.
DMW also reported its flagship estate Aseana City has seen “unprecedented” level of developments. Ayala Malls Bay Area recently launched its flagship mall and multimodal transportation hub. Once completed, it will have an aggregate of 400,000 square meters of gross floor area, including a 10-level office space and 350-room Seda Hotel.
Sequoia Hotel, a 12-story business-friendly hotel with 175 guest rooms, also opened its doors, and a Nissan car dealership meanwhile commenced site preparation.
Through its 50-percent owned joint venture Bay Resources and Development Corp., DMW also announced that a Nissan car dealership would rise along Bradco Avenue. The proposed development would be constructed on a 2,500-square meter parcel of land, to be completed by 2021. The lease period is for 10 years with an extension option of five years.
Other car dealerships within Aseana City include Ford, Honda and Subaru.
At the neighboring Pagcor Entertainment City, a new integrated gaming resort, Westside City Resorts World, is scheduled to open in 2021.
“These new developments underpin our vision to create a vibrant next generation central business district that incorporates tourism and gaming concepts, recreational options and retail offerings,” Wenceslao said.
In October, DMW completed the sale of a 2,202-square meter land parcel in Aseana City for P935.85 million or about P425,000 per square meter, exclusive of value-added tax.