PROPERTY firms in the country registered double-digit growth for the first quarter of 2018, buoyed by the generally positive prospects of the real estate industry.
Andrew L. Tan-led Megaworld Corp. posted an 11.3% increase in net income attributable to the parent to P3.2 billion during the first three months of the year, it said in a statement issued Wednesday.
Megaworld generated a 10% rise in revenues to P13.1 billion for the quarter, 70% of which or P8.8 billion came from the residential business.
Rental income was the company’s fastest growing segment, clocking in a 16.5% growth to P3.4 billion. Megaworld Senior Vice-President Kevin L. Tan said this places the company on track to achieving P20 billion in rental revenues by 2020.
“This year will be critical for us as we construct a record number of leasable office and mall spaces,” Mr. Tan said.
Megaworld will be completing five office towers covering 207,000 square meters (sq.m.) of leasable space this year, which will bring the company’s office stock to 1.2 million sq.m.
For the mall and commercial properties business, Megaworld will add about 176,000 sq.m. of gross floor area (GFA) through the development of seven malls and the expansion of existing ones. By the end of 2018, the company will have a GFA of 791,587 sq.m. from malls and commercial properties.
Hotel revenues went up 10% to P368 million driven by the expansion of its brands Savoy and Belmont.
On the other hand, the attributable profit of Gokongwei-led Robinsons Land Corp. (RLC) expanded by 12% to P1.54 billion during the quarter. Revenues likewise improved by 18% to P5.88 billion, after seeing growth across all its segments.
The commercial centers division was RLC’s largest contributor to revenues at 46%. The segment posted P2.88 billion for the period, up by 7% year on year. The company benefited from same-mall revenue growth and rental revenue contribution of its newly opened malls, including Robinsons Place Iligan, Robinsons Place Naga, and Robinsons North Tacloban.
The residential segment reported P2.11 billion in revenues for the period, accounting for 33% of RLC’s overall revenues.
The hotels division, meanwhile, provided P474.6 million for the period, a 4% year-on-year increase. Systemwide occupancy rate of RLC’s hotels, which include Go Hotels, Summit Hotels, Crown Plaza Manila Galleria, and Holiday Inn Manila Galleria, stood at 63% by the end of March 2018.
RLC’s infrastructure and integrated developments division unit, meanwhile, generated P27.8 million for the quarter.
Real estate companies have been reporting generally positive reports this quarter. Ayala Land, Inc. disclosed earlier this week that net income went up 17% to P6.52 billion for the quarter, given the 17% increase in revenues to P25.14 billion. SM Prime Holdings, Inc.’s provincial expansion allowed earnings to climb 15% to P7.6 billion, on the back of a 14% uptick in revenues to P23.4 billion. — Arra B. Francia
