Megaworld Corporation, the Philippines’ leading developer of integrated urban townships and the biggest lessor of office spaces, grew its net income by 12.13 percent to P2.63 billion in the first quarter of 2016 from P2.35 billion during the same period last year.
In a disclosure to the Philippine Stock Exchange, Megaworld said its rental business boosted first quarter growth, with revenues soaring to an all time high of P2.29 billion, 15.18 percent higher than the P1.97 billion posted 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,” said Megaworld chief finance officer Francis Canuto.
The company earlier announced that rental revenues will hit the P11 billion mark by the end of the year.
Consolidated revenues of the Megaworld Group, which includes its Global Estate Resorts, Inc. (GERI), Empire East Land Holdings, Inc. and Suntrust Properties, Inc., amounted to P11.46 billion for the first three months of the year, up 9.49 percent from P10.47 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 P6.86 billion, up 10 percent from P6.24 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,” explained Canuto.
He added that “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,” revealed Canuto.