Property giant’s rental income in all-time high, up by 23.46% to P8.73-B
Megaworld, the country’s largest developer of integrated urban townships and the biggest lessor of office spaces, has breached the P10-billion mark in net core income for 2015. The company’s core profit reached P10.40-billion (net of P181-million non-recurring gain from P10.58-billion), up 10.58% from last year’s P9.40-billion (net of P12.16-billion non-recurring gain).
“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 put 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,“ says Francis Canuto, chief finance officer, Megaworld.
Megaworld’s consolidated revenues, excluding non-recurring gains, grew 9.37% 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 – hit double-digit growth in 2015.
Megaworld’s leasing business has been the fastest growing business segment in 2015, as rental income grew to a remarkable 23.46%. Leasing income from malls, commercial centers, and offices reached P8.73-billion in 2015 from P7.07-billion the previous year.
“Our rental business had 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 BPO companies, particularly in key growth areas in Visayas and Mindanao where Megaworld is already present, ” adds Canuto.
The company launched five townships in 2015, bringing its total township developments across the country to 20. These 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 (35.6-hectares); and Westside City in the Entertainment City in Paranaque (31 hectares.)