D.M. Wenceslao and Associates Inc. (DMWAI, PSE: DMW) has reported consolidated revenues of PhP1.24 billion for the first half of 2021, down by 20% year-on-year. Despite this, however, net income attributable to parent equity holders rose by 18% to PhP853 million as a result of a tax credit related to Corporate Recovery and Tax Incentives for Enterprise Act (CREATE).
DMWAI’s residential revenues dropped 51% YoY to PhP267 million as only PhP110 million revenues were booked for Pixel Residences during the period, down from PhP517 million in the 1H 2020. We note that Pixel Residences is already near full completion and turnover, with little remaining unrecognized revenues. Meanwhile, revenues from MidPark Towers reached PhP156 million from only PhP29 million in 1H2020.
The company’s recurring income consisting of rentals from land, building, and other revenues such as common use service area fees remained stable at PhP974 million, accounting for 78% of total 1H 2021 revenues. Notwithstanding the threats posed by the COVID-19 pandemic, the company’s building leasing portfolio maintained a healthy occupancy rate of 90%.
“While we avidly await a full-blown recovery, we remain vigilant of risks arising from the still-ongoing COVID pandemic, including the more contagious Delta Variant and the stricter lockdown measures implemented to curb a surge in cases,” said Delfin Angelo ‘Buds’ Wenceslao, Chief Executive Officer. “As risks continue to emerge, we highlight the importance of having a conservatively-managed balance sheet which so far has allowed us to support our stakeholders throughout this pandemic, to continue to distribute dividends to our shareholders, and to pounce on opportunities that presented themselves.
“DMWAI has already started its employee vaccination program dubbed ‘2 Shots Forward’ while hand in hand still maintaining strict health protocols as the company, in its capacity, continues to support efforts towards recovery.”