MANILA -- Property developer Megaworld Corp. on Wednesday said its profit surged by 12.51 percent in the first half of 2015 driven by real estate sales and as rental income soared to historic high.
Megaworld reported to the Philippine Stock Exchange (PSE) its net income reached P5.43 billion in January to June from Php4.82 billion during the same period last year.
“The backdrop of the Philippines’ vibrant economy continues to benefit the local property market as evident in our first half results. We look forward to another bright year for Megaworld as we focus our efforts on aggressively expanding our townships across the country and providing new and innovative offerings in residential, office and commercial businesses,” said Megaworld chief finance officer Francis Canuto.
Canuto said the company will launch five new townships this year, providing about 400 hectares of land for development.
The company’s strong performance in its rental business, which includes offices, malls and commercial centers, contributed to the sharp growth in the first-half earnings.
Rental income reached Php4.21 billion in the first half of 2015, soaring 22.25 percent from Php3.44 billion last year.
“We remain steadfast in strengthening our recurring income businesses. This year, we are opening new malls and office towers that will allow us more opportunities for leasing growth. Megaworld is on-track in achieving its Php10-billion target in rental income next year,” added Canuto.
Megaworld has announced it is spending around Php20 billion for 12 state-of-the-art office towers in Fort Bonifacio in the next three years.
Residential business, on the other hand, continued its momentum as real estate sales soared by 12 percent to Php13.43 billion from Php12.01 billion.
Meanwhile, consolidated core revenues of the Megaworld Group, which includes Global-Estate Resorts, Inc. (GERI), Empire East Land Holdings, Inc. and Suntrust Properties, Inc., amounted to Php20.93 billion for the first half of 2015, up 13.56 percent from Php18.43 billion during the same period in 2014. (PNA) CTB/LDV
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