Property developer D.M. Wenceslao and Associates Inc.’s (DMW) 9-month net income rose 39 percent to ₱1.7 billion from ₱1.2 billion a year ago, bolstered by improved mobility and notwithstanding macroeconomic headwinds.
Its rental revenues from land, building, and other earnings, including parking fees, improved 9 percent to ₱1.6 billion, accounting for 50 percent of total revenues.
In the third quarter, DMW started booking rental revenues from the 1.4-hectare parcel of land leased by St. Luke’s Medical Center. Further, improved mobility and the return of numerous office tenants on-site significantly increased parking collection during the period.
Residential revenues surged 62 percent to ₱801 million on the back of a higher number of units qualified for revenue recognition and as construction works remained unhampered. Last September, DMW subsidiary Aseana Residential Holdings topped off the fourth and final tower of MidPark Towers.
DMW maintained a net cash position of ₱2.4 billion as of the end of the third quarter. Current ratio remains high at 1.7x.
“DMW continued to deliver its growth initiatives despite a macroeconomic backdrop tainted with relatively high inflation and rising interest rates. The strategies that we’ve instituted early on proved essential in allowing us to sail through headwinds,” said Delfin Angelo ‘Buds’ Wenceslao, chief executive officer.
“In the early stages of project development, we’ve already locked in most construction material prices for both Parqal and MidPark Towers, keeping our costs protected from the run-up in prices,”Wenceslao said.
“Our leverage ratios continued to be among the lowest in the industry, with peso-denominated and fixed-rate debt that kept us insulated from forex fluctuations and changes in interest rates. We firmly believe that beyond these short-term headwinds, the long-term growth story of the Philippine real estate industry remains intact,”he added.