CITY OF SAN FERNANDO – The country’s largest developer of integrated urban townships has increased its net income by 13.4 percent to P13.3 billion (including non-recurring gains of P113 million) in 2017 from P11.7 billion (including non-recurring gains of P82 million) the previous year.
In a statement sent on Monday, Megaworld said its net income was attributable to its parent company that ended at P12.8 billion by end of December 2017, a 12.7 percent jump from P11.3 billion during the same period last year.
The statement added that the healthy growth was underpinned by the strong performances of its key businesses in residential and hotel developments, office as well as commercial space leasing in malls and shopping centers.
Consolidated revenues including non-recurring gains grew 7.7 percent to P50.4 billion in 2017 from the previous year’s P46.8 billion.
Megaworld’s rental business, which covers both office and commercial space leasing grew the fastest among the segments. Rental income soared 18.2 percent to P11.8 billion in 2017 from last year’s P10 billion.
Comprising around 70 percent of its consolidated revenues, the company’s residential business was up 4.5 percent in 2017, growing to P34.6 billion from P33.1 billion the previous year.
“We are still way beyond our targets and we see this momentum to continue until we reach our P20 billion target in annual rental income by 2020, or even beyond that. There is still so much opportunities to tap in the property market and we are ready for that,” says Francis Canuto, Megaworld senior vice president and treasurer.
Megaworld is allocating P60 billion in capital spending this year, with 80 percent covering development projects, mostly residential, office and commercial developments in various townships across the country. The remaining 20 percent will be set aside for land acquisition and other investment properties. The Megaworld Group is now present in more than 30 cities around the country.
“We will continue to be aggressive in developing more townships and integrated lifestyle communities across the country, most especially in the provinces,” said Canuto.
Last year, Megaworld’s subsidiary Global-Estate Resorts, Inc. (GERI) introduced its second “integrated lifestyle community,” the 300-hectare Hamptons Caliraya, in Cavinti, Laguna, which is surrounded by the famous Lake Caliraya.
About the same time last year, Megaworld announced that it is developing a Makati- inspired business district in General Trias Cavite, the 35-hectare Maple Grove Commercial District.
In just over a month, it has sold around 80 percent of the 360 prime commercial lots worth P9 billion, the fastest take-up of titled commercial lots in the company’s history.
During the last 28 years, Megaworld has built over 660 residential developments, 54 office towers and 15 lifestyle malls in 23 master-planned townships and integrated lifestyle communities across the Philippines.
These also include: The Capital Town Pampanga beside the Pampanga Provincial Capitol of this capital city (35.6-hectares); Eastwood City in Libis, Quezon City, (18.5 hectares); Newport City in Pasay City (25 hectares); McKinley Hill (50 hectares), McKinley West (34.5 hectares), Uptown Bonifacio (15.4 hectares) and Forbes Town (5 hectares), all in Fort Bonifacio, Taguig City; The Mactan Newtown in Lapu-Lapu City, Cebu (30 hectares); Iloilo Business Park in Mandurriao, Iloilo City (72 hectares); Sta. Barbara Heights in Sta. Barbara, Iloilo (173 hectares); Boracay Newcoast in Boracay Island (150 hectares); Twin Lakes in Alfonso, Batangas near Tagaytay (1,300 hectares); ArcoVia City in Pasig City (12.3 hectares); Southwoods City in the boundaries of Cavite and Laguna (561 hectares); Davao Park District in Lanang, Davao City (11 hectares); Alabang West in Las Piñas City (62 hectares); Eastland Heights in Antipolo, Rizal (640 hectares); Suntrust Ecotown in Tanza, Cavite (350 hectares); Maple Grove in General Trias, Cavite (140 hectares); The Hamptons Caliraya in Lumban-Cavinti, Laguna (300 hectares); The Upper East (34 hectares) and Northill Gateway (50 hectares) both in Negros Occidental; and Westside City in the Entertainment City in Paranaque City (31 hectares).