Megaworld profits rise 289% to P16.4-B in H1-A A +A
Monday, August 11, 2014
MEGAWORLD, the country's leading property developer and the no. 1 office developer and landlord, posted a net income of P16.44 billion for the first half of 2014, 289 percent higher than the P4.23 billion posted during the same period last year.
The increase, inclusive of the P11.62-billion non-recurring gain from the acquisition and sale of subsidiary and associate, has been attributed to strong residential sales in its various townships, particularly in Newport City, Uptown Bonifacio, McKinley Hill and Eastwood City; and higher leasing income from its office and retail portfolio.
"I am confident that Megaworld can sustain its core growth momentum as we continuously expand all business segments in our townships across the country," Megaworld chair and CEO Dr. Andrew L. Tan said.
On the other hand, Megaworld's rental income from office developments and lifestyle malls surged to a record P3.44 billion in first half 2014, 22 percent higher than P2.83 billion same period in 2013.
Total revenues of Megaworld, together with its subsidiaries Global Estate Resorts Inc., Empire East Land Holdings and Suntrust Properties, amounted to P31.96 billion for the first half 2014, up 85 percent from P17.28 billion for the same period in 2013.
Megaworld, and its subsidiaries, posted P47 billion in reservation sales in the first half 2014 which is 9 percent higher compared to same period last year.
In June, Megaworld completed the consolidation of Tan's real estate companies under Megaworld with the acquisition of 49.2 percent stake of Alliance Global Group, Inc. in Global-Estate Resorts, Inc. (GERI). The acquisition brings Megaworld’s majority stake in GERI to 80.4 percent and increases the property giant’s total land bank to around 4,000 hectares.
Megaworld group launched a total of 16 residential projects during the first half of 2014.
Megaworld is also set to further solidify its position as the leader in office developments in terms of total office space inventory by completing another 112,000 square meters of office spaces this year.
By the end of 2014, the company will have around 712,000 square meters of office spaces in its portfolio with the completion of new state-of-the-art office towers in Uptown Bonifacio, The Mactan Newtown in Cebu, and Iloilo Business Park.
On the retail side, Megaworld is also set to complete additional commercial and retail spaces with the completion of the Venice Grand Canal Mall in McKinley Hill, and some commercial strips at The Mactan Newtown. Megaworld’s existing commercial and retail space portfolio is currently at 304,083 square meters.
To date, the company has 10 townships all throughout the country covering around 300 hectares of land. This includes the 17-hectare Eastwood City, which is considered to be the country’s first cyberpark; the 50-hectare McKinley Hill in Fort Bonifacio; the 25-hectare Newport City in Pasay City; the 5-hectare Forbes Town Center in Bonifacio Global City; the 28.8-hectare The Mactan Newtown in Lapu-Lapu City, Cebu; the 15.4-hectare Uptown Bonifacio in Bonifacio Global City; the 34.5-hectare McKinley West in Fort Bonifacio; the 12.3-hectare Woodside City in Pasig City; the 11-hectare Davao Park District in Davao City; and the 72-hectare Iloilo Business Park in Iloilo City.
Published in the Sun.Star Davao newspaper on August 12, 2014.