D.M. WENCESLAO & Associates, Inc. (DMW) saw its attributable profit slip by 6% in the second quarter, as revenues likewise slowed during the period.
In a regulatory filing, the newly listed property developer reported a net income attributable to the parent of P503.13 million in the three months ending June, lower than the P535.32 million it realized in the same period a year ago.
The profit drop followed a 41% decline in DMW’s revenues to P637 million, versus the P1.07 billion it generated during the second quarter of 2017.
DMW’s performance in the first quarter allowed it to grow its attributable profit by 42% in the first half of the year to P969.8 million. The company attributed the increase to its core leasing business and the addition of an investment property.
“Strong execution from our marketing, and construction teams is accelerating momentum across our businesses. We have completed our third commercial office building ahead of schedule and within budget,” DMW Chief Executive Officer Delfin Angelo C. Wenceslao said in a statement.
Mr. Wenceslao said the early delivery of the project allowed it to add more than 30,000 square meters of leasable area to its portfolio, which has already been fully leased out by the end of 2017.
Revenues reached P1.2 billion for the first semester, 23% lower year-on-year. Recurring income accounted for 80% of the total revenues, mainly due to the completion of the new office building.
Rentals of land went up by 5% P482.2 million, while rentals of buildings grew by 70% to P351.9 million. The company’s residential segment contributed P119.5 million in revenues, 6% higher than the same period year before. Meanwhile, revenues from the construction segment went up 19% to P114.5 million.
The company was able to start construction of another office building called 8912 Asean Ave. during the first six months of the year. The latest project will add 68,890 sq.m. of leasable space under DMW’s portfolio by the time it is completed in 2021.
“We have a clear set of strategies centered around portfolio expansion through a combination of land and commercial leasing and residential sales growth. We are continuing to ramp up the business — strategically and with a long-term mind-set — while also taking decisive action that could produce meaningful returns to our shareholders in the quarters and years ahead.” Mr. Wenceslao said.
Shares in DMW dropped 0.81% or eight centavos to close at P9.77 each at the stock exchange on Tuesday. — Arra B. Francia