Aseana City developer beats prepandemic earnings

D.M. Wenceslao and Associates Inc., the developer of the sprawling Aseana City reclamation project along Manila Bay, beat prepandemic earnings in 2022 thanks to the contribution of new projects.

In a statement on Wednesday, the listed developer said profits last year increased 3 percent to P2.1 billion.

In terms of core earnings, D.M. Wenceslao’s income was up 13 percent from last year and higher by 27 percent from its prepandemic income of P1.7 billion.

Company CEO Delfin Angelo “Buds” Wenceslao said the company managed to grow the business while mitigating risks from rising raw material prices and financing costs.

“We kept our leverage ratios low with peso-denominated and fixed-rate debt that kept us insulated from forex fluctuations and the rise of interest rates,” he said.

“We also proactively locked-in favorable pricing for majority of construction materials at the outset of our projects, safeguarding our costs from the run-up in prices,” Wenceslao added.

Rental sales consist of leases from land, building, and other revenue sources. This grew 52 percent to P2.2 billion last year.

“The growth in rental revenues was driven by increased take-up in the newly opened commercial buildings. Moreover, parking revenues increased significantly due to better mobility throughout the year,” the company said.

It said residential revenues alone doubled to P1.3 billion as it accelerated construction activities in 2022.

Wenceslao was hoping for better prospectus in 2023 since the real estate sector was identified as a key driver under government’s development plans.

“[D.M. Wenceslao] heeds to this challenge through our continued build-out of Aseana City based on social and environmental sustainability principles. We remained all systems go on our expansion plans all through 2022,” he said.

He cited projects such as the 1.4-hectare land lease contract with St. Luke’s Medical Center.

Moreover, he said residential construction remained in “full-swing” since the developer topped-off the final tower of MidPark while its commercial project, Parqal, reached a completion rate of 89 percent last December.