Manila—(PHStocks)—Property giant Megaworld Corp. (PSE: MEG), the Philippines’ leading developer of integrated urban townships and the biggest lessor of office spaces, grew its net income by 12.13% to PhP2.63‐billion in the first quarter of 2016, from PhP2.35‐billion during the same period last year. Megaworld’s rental business boosted the company’s first quarter growth, with revenues soaring to an all‐time high of PhP2.29‐billion, 15.18% higher than PhP1.97‐billion in the same period last year.
“We have sustained our expansion plans for our office and mall businesses, which bolstered our rental revenues. In the next five years, we see our rental businesses become the key driver of our growth as we expect a continuing momentum in consumer spending and a remarkable growth in BPO revenues,” says Francis Canuto, chief finance officer, Megaworld.
The company earlier announced that rental revenues will hit the PhP11‐billion mark by the end of the year.
Consolidated revenues of the Megaworld Group, which includes its subsidiary brands Global‐Estate Resorts Inc. (PSE: GERI), Empire East Land Holdings, Inc. and Suntrust Properties Inc., amounted to PhP11.46‐billion for the first three months of the year, up 9.49% from PhP10.47‐billion in the same period last year.
Residential sales continued to grow in the first three months of the year. The company’s residential business soared to PhP6.86‐billion, up 10‐percent from PhP6.24‐billion in the same period last year.
“We continue to innovate our residential offerings that adapt to the diverse characteristics of each township that we build. That is why we are able to sustain the growth in our residential business,” explains Canuto.
“Megaworld has laid out its groundwork of growth by making sound decisions and thorough planning of the vast land bank that we have. This year, we will continue to strengthen, if not expand, our township footprint, where we can build more residential, office and mall developments. Our healthy first quarter results is indicative of another positive outlook for 2016,” reveals Canuto.
Megaworld now has 20 integrated urban township developments across the Philippines, namely: 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).