MEGAWORLD Corp. grew its attributable profit by 14% in the third quarter of 2018, driven by the double-digit expansion of both its residential and leasing businesses.
In a regulatory filing, the property firm of tycoon Andrew L. Tan reported a net income attributable to equity holders of the parent of P4.04 billion from July to September, versus P3.54 billion in the same period a year ago. Revenues also surged 17% to P14.98 billion.
On a nine-month basis, Megaworld’s attributable profit rose 13% to P11.29 billion following a 13% increase in revenues to P41.76 billion.
This translates to earnings per share of 35.5 centavos, from 31.4 centavos in the same period in 2017.
“The residential landscape has been experiencing a resurgence, which has been very evident in its growth during the past quarters. Our rental business for both offices and Megaworld Lifestyle Malls remains to be the fastest growing segment of the company,” Megaworld Senior Vice President and Treasurer Francisco C. Canuto said in a statement.
Residential revenues went up by 10% to P28.39 billion by end-September, on account of higher sales during the third quarter. Sales of real estate rose by 9.9% to P23.04 billion for the period, with sales coming from The Venice Luxury Residences, San Antonio Residence, The Ellis, and Uptown Parksuites Towers 1 & 2, among others.
Megaworld noted that gross margins for the segment improved by more than 200 points year-on-year.
“We have already rolled out quite a number of residential projects this year, which reflects the kind of demand that we have been seeing in 2018…as long as we see this type of demand on the ground, then we will continue to launch projects aggressively. Moreover, we have already secured the land to do this, which is key in being a leader in this industry,” Mr. Canuto said.
For commercial properties, rental income delivered an 18.6% increase to P10.46 billion from P8.82 billion in the same period a year ago. The company benefited from the expansion of its office and retail portfolio. It further cited the higher demand for office spaces from business process outsourcing (BPO) companies.
The company’s hotel operations meanwhile generated P1.03 billion in revenues, 8.42% higher from a year ago due to higher hotel occupancy rates coupled with the opening of a new hotel.
“We have been tracking a promising trajectory during the first nine months of 2018, and we are optimistic to finish the year strong,” Mr. Canuto said.
Shares in Megaworld dropped by 1.11% or five centavos to close at P4.45 each at the stock exchange on Monday. — Arra B. Francia