MEGAWORLD CORP. grew earnings by 12% in the third quarter, fueled by the double-digit increase in rental revenues.
In a regulatory filing, the property firm of tycoon Andrew L. Tan reported its net income attributable to the parent jumped to P3.53 billion in the July to September period from P3.16 billion during the same period a year ago.
This brought its nine-month attributable profit to P9.98 billion, 11% higher than the P8.98 billion it delivered in the same period in 2016.
Consolidated revenues rose 5% to P12.82 billion in the third quarter, driving its nine-month tally 5% higher to P37.1 billion.
For the third quarter, rental income went up 16% to P3 billion, while the nine-month figure surged by 19% to P8.82 billion.
“Our rental business remains to be a key contributor to our consistent growth, and we see this to become stronger in the coming years as we complete more office and commercial buildings as well as malls in our townships across the country,” Megaworld Senior Vice-President and Treasurer Francisco C. Canuto said in a statement.
The company is currently the largest lessor of office spaces in the country with a total of 888,500 square meters (sq.m.) The company will be adding more office spaces in Taguig City, and Southwoods City in Laguna, among other locations, as it targets to be the first property developer with 1 million sq.m. under its office space inventory by the end of 2017.
Megaworld reported real estate sales went up by 0.8% to P7.33 billion in the third quarter from P7.28 billion a year ago. For the nine-month period, real estate sales rose 1.2% to P20.95 billion from P20.71 billion a year ago.
Its hotel business saw a 5% year-on-year increase in revenues to P302 million, bringing the nine-month figure 8% higher to P950 million. Among its hotels are the Marriott Courtyard Hotel in Iloilo Business Park, Savoy Hotel in Boracay Newcoast and in Newport City, as well as Hotel Lucky Chinatown in Binondo, Manila.
Megaworld is part of Alliance Global Group, Inc., Mr. Tan’s holding firm which also has core investments in liquor, gaming, and quick service restaurants.
Shares in Megaworld picked up 15 centavos or 2.64% to P5.84 each at the stock exchange on Wednesday. — Arra B. Francia
