MANILA -Tycoon Andrew Tan’s Megaworld Corp. saw profit soar during the first nine months of the year as it defied fears over a property sector slowdown amid elevated interest rates.
From January to September this year, the company booked a net income of P12 billion, a gain of 43 percent over the same period in 2022. Total revenues were up 14 percent to P48.6 billion.
“We are optimistic that we will reach our record revenues by the end of the year across our businesses as we continue to capture opportunities within and beyond Metro Manila,” said Kevin L. Tan, CEO of Alliance Global Group, the parent company of Megaworld.
The developer also booked a notable jump in reservation sales, indicating resilient demand for residential projects.
“The company is poised to exceed its year-end reservation sales target of P130 billion, with reservation sales in the first nine months of 2023 already growing by 28 percent to P109.5-billion,” Megaworld said in the filing.
Real estate sales during the nine-month period also rose 11 percent to P29 billion.
It said malls and offices combined saw revenues hit P13.3 billion, up 17 percent over the same period last year.
Megaworld Lifestyle Malls grew its revenues by 70 percent to P3.9 billion on higher rental collections while Megaworld offices increased 3 percent to P9.4 billion.
It has so far launched P69.3 billion worth of projects this year, the filing showed.
These include Uptown Modern in Uptown Bonifacio, Taguig City with P29-billion worth of inventory; Laurent Park in Manhattan Garden City, Quezon City with P6.5-billion worth of inventory; and Kensington Sky Garden in Upper East, Bacolod City with P2.5-billion worth of inventory.
“We still have projects to be launched before the year ends,” Tan said.
The company’s hotels and resorts segment also surpassed its full-year 2019 revenues during the first nine months of the year, reaching P2.6-billion or an increase of 51 percent.
“This was largely driven by the promising growth of [meetings, incentives, conferences and exhibitions] activities and local tourism. During the period, Megaworld Hotels & Resorts also saw improved average occupancy and higher room rates compared to last year,” the developer said.