Megaworld’s recurring profit at P11.63B

Tycoon Andrew Tan-led property developer Megaworld Corp. grew its recurring net profit by 12 percent to P11.63 billion last year, mostly driven by an increase in earnings from its leasing portfolio.

The earnings reported excluded non-recurring items, particularly P82 million in one-time gains in 2016 and the P181-million non-recurring gains in 2015.

In a disclosure to the Philippine Stock Exchange on Wednesday, Megaworld said rental revenues increased by 15 percent last year to P10.01 billion, an all-time high for the company. This was attributed to the company’s efficient cost management from operations.

“Megaworld achieved another milestone last year as we breached the P10-B mark for our rental
revenues. We have achieved our targets across the board as we have steadily grown and expanded our core businesses. Township development remains to be a key strength of our company and we have focused on strengthening the various components of our townships on top of our residential businesses, such as offices, malls and commercial developments as well as hotels,“ said Megaworld treasurer Francis Canuto.

Megaworld’s consolidated revenues, excluding non-recurring gains, grew by 4 percent year-on-year last year to P46.74-billion.

With cost management programs, expenditures grew by a modest 2 percent to P35.1 billion Operational expenses alone rose by 5 percent, slower than the 7 percent growth in the previous year.

“Last year, we became successful in introducing another concept in real estate development which
we call the ‘integrated lifestyle community.’ This year, we hope to add more developments under this category as we activate some of our remaining raw lands across the country that have good
potential for leisure and tourism,” added Canuto.