PROPERTY developer D.M. Wenceslao & Associates, Inc. (DMW) posted a 10% drop in net income attributable to equity holders to P2.13 billion last year, which its top official said had posed minimal risks to business.

The company also reported its consolidated revenues declined by 22% to P2.73 billion from P3.51 billion.

“While 2020 proved to be a uniquely challenging year that caused unparalleled economic disruption globally, the risks that the pandemic posed in our business operations have been minimal,” DMW Chief Executive Officer Delfin Angelo C. Wenceslao said in a statement on Monday.

The property developer said its residential segment “finished strong” in 2020, while earnings from its land and building rentals remained robust.

Recurring income, which includes land and building rentals and other revenues, made up for 72% or P1.96 billion of the company’s total revenues for the year.

Its leasing segment reported an occupancy rate of 93% throughout the year.

“Despite the uncertainty brought upon by this pandemic, our leasing business proved to be a solid source of recurring income as our lease portfolio is spread across various industries with diverse area requirements and commercial considerations,” Mr. Wenceslao said.

Earnings for its residential business amounted to P749.3 million, up by 37% from P547.65 million in 2019.

The company said it saw minimal cancellations of reservations in 2020.

In December last year, the company said it had turned over 91% of its inventory. Revenues of P1.25 billion were recognized for Pixel Residences, DMW’s first residential real estate project.

The company said it had used 66% or P5.04 billion of the net proceeds from its initial public offering to finance the development of its pipeline projects, two of which are set to be completed next year.

The pipeline projects include 8912 Asean Ave. development, which is said to be the company’s largest project so far. The mixed-use development Parqal, meanwhile, is forecast to be finished by the fourth quarter of this year.

The company expects the two projects to boost its available gross leasable area by nearly 140,000 square meters.

In an analysts’ briefing, the company said it expects the residential segment to be a notable contributor to its revenues in 2021.

Some 93% of Pixel Residences units have been turned over to buyers, and reported an unrecognized revenues of P265.1 million in the first half of this year.

Pre-selling for another DMW residential project, MidPark Towers, is ongoing.

On Monday, DMW shares at the stock exchange inched down by 1.31% to close at P6.80 from P6.89. — Keren Concepcion G. Valmonte