The Market Monitor Minding the Nation's Business
Core profit of listed property developer Megaworld reached P10.39 billion in 2015, excluding a P18-million one-time gain, up 10.58 percent from the previous year’s P9.4 billion, excluding a P12.16-billion nonrecurring gain, the company reported to the bourse.
Megaworld is growing its rental portfolio as it strives to maintain stronghold on being a top township developer.
“We already have a strong roster of townships across Luzon, Visayas and Mindanao that are backed by adequate landbanking and carefully thought masterplans. We have already mastered the art of township development. What we want to focus on now is how to further grow our rental portfolio, which is integral to being a township developer. Malls and offices are key components of an urban township,“ Megaworld Chief Finance Officer Francis Canuto said.
Megaworld’s consolidated revenues, excluding non-recurring gains, grew 9.37 percent year-on-year in 2015 to P44.81 billion from the previous year’s P40.97 billion. Each of Megaworld’s core business, residential, rental and hotel operations, reported double-digit growths in 2015.
Megaworld’s leasing business has been the fastest growing business segment in 2015, as rental income grew 23.46 percent. Leasing income from malls, commercial centers, and offices reached P8.73 billion in 2015 from P7.07 billion the previous year.
“Our rental business has been growing exponentially the last five years. We are confident that we will reach the P11 billion target by the end of this year as we see continuous growth in consumer spending as well as further expansion of business process outsourcing (BPO) companies, particularly in key growth areas in Visayas and Mindanao where Megaworld is already present,” Canuto added.
The company launched five townships in 2015, bringing its total township developments across the country to 20 which are Eastwood City in 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 Center (5 hectares), all in Fort Bonifacio; The Mactan Newtown in Cebu (28.8 hectares); Iloilo Business Park (72 hectares) and Sta. Barbara Heights (173 hectares), both in Iloilo; Boracay Newcoast in Boracay Island (150 hectares); Twin Lakes in 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); Suntrust Ecotown in Tanza, Cavite (350 hectares) and The Upper East (34 hectares) and Northill Gateway (50 hectares) both in Negros Occidental; a vast property beside the Pampanga Provincial Capitol in the City of San Fernando (35.6hectares); and Westside City in the Entertainment City in Paranaque (31 hectares.) RIZA LOZADA