Megaworld income surges 289%-A A +A
Monday, August 11, 2014
Company posts net income of P16.44-billion for first half of 2014; strong residential sales reported
MEGAWORLD posted a net income of P16.44-billion for the first half of 2014, 289 percent higher than the P4.23-billion for the same period in 2013 due to strong residential sales in its various townships, particularly in Newport City, Uptown Bonifacio, McKinley Hill and Eastwood City; and higher leasing income from its office and retail portfolio.
The figure is inclusive of the P11.62-billion non-recurring gain from the acquisition and sale of subsidiary and associate.
“I am confident that Megaworld can sustain its core growth momentum as we continuously expand all business segments in our townships across the country,” said Dr. Andrew L. Tan, chairman and CEO of Megaworld.
Megaworld is the Philippines’ leading property developer and the top office developer and landlord.
Megaworld’s rental income from office developments and lifestyle malls surged to a record P3.44 billion in the first half 2014, 22 percent higher than P2.83 billion in the same period in 2013.
Total revenues of Megaworld, together with its subsidiaries Global Estate Resorts Inc., Empire East Land Holdings and Suntrust Properties, amounted to P31.96 billion for the first half 2014, up 85 percent from P17.28 billion for the same period in 2013.
Megaworld and its subsidiaries posted P47 billion in reservation sales in the first half 2014, which is nine percent higher compared to the same period last year.
In June, Megaworld completed the consolidation of Tan’s real estate companies under Megaworld with the acquisition of 49.2 percent stake of Alliance Global Group, Inc. in Global-Estate Resorts, Inc. (GERI). The acquisition brings Megaworld’s majority stake in GERI to 80.4 percent and increases the property giant’s total land bank to around 4,000 hectares.
The Megaworld group has launched a total of 16 residential projects during the first half of 2014. Megaworld launched six projects: SalcedoSkysuites in Makati CBD, The Venice Luxury Residences – Fiorenzo Tower, The Florence Tower 2 and Viceroy East Tower in Mckinley Hill, Taguig, Lafayette Park Square in Iloilo and Mactan Belmont Luxury Hotel in Mactan, Cebu.
Empire East launched four projects: Mango Tree Residences East and West Tower in San Juan, Kasara Urban Residences Tower 5 in Pasig, and Pioneer Woodlands Park 2 in Mandaluyong. Suntrust launched five projects: SuntrustAscentia and Suntrust Solana in Manila, SuntrustAmadea in Quezon City, 88 Gibraltar in Baguio City and Siena Hills in Lipa, Batangas. GERI, meanwhile, launched Pahara Residential Village at Southwoods City.
Megaworld is also set to solidify its position as leader in office developments in terms of total office space inventory by completing another 112,000 square meters of office spaces this year. By the end of 2014, the company will have around 712,000 square meters of office spaces in its portfolio with the completion of new office towers in Uptown Bonifacio, The Mactan Newtown in Cebu and Iloilo Business Park.
On the retail side, Megaworld is also set to complete additional commercial and retail spaces with the completion of the Venice Grand Canal Mall in McKinley Hill and some commercial strips at The Mactan Newtown. Megaworld’s existing commercial and retail space portfolio is currently at 304,083 square meters.
Megaworld pioneered the “Live-Work-Play-Learn” lifestyle concept for mixed-use communities in the Philippines, which are popularly known as “townships.”
The company has 10 townships all throughout the country covering around 300 hectares of land. These include the 17-hectare Eastwood City, which is considered the country’s first cyberpark; the 50-hectare McKinley Hill in Fort Bonifacio; the 25-hectare Newport City in Pasay City; the five-hectare Forbes Town Center in Bonifacio Global City; the 28.8-hectare The Mactan Newtown in Lapu-Lapu City, Cebu; the 15.4-hectare Uptown Bonifacio in Bonifacio Global City; the 34.5-hectare McKinley West in Fort Bonifacio; the 12.3-hectare Woodside City in Pasig City; the 11-hectare Davao Park District in Davao City; and the 72-hectare Iloilo Business Park in Iloilo City.
Over the past 25 years, the Megaworld Group emerged as the country’s top real estate organization. It has completed more than 320 residential and office buildings with a total area of around 5.6 million square meters. Currently, about 185 residential, office and hotel buildings with a total area of around 5.4 million square meters are under development. PR
Published in the Sun.Star Cebu newspaper on August 12, 2014.