MEGAWORLD Corp., the property development arm of businessman Andrew L. Tan, said its income grew 11 percent during the first half of the year to P6.69 billion, from last year’s P6.03 billion.
The company’s rental income from office and commercial space leasing drove its earnings for the period, the company said.
“It has been a strong first half for Megaworld as we continue the trajectory of our rental income, while maintaining revenues for our residential business. Across businesses, there is an indication that we will continue our double-digit growth until the end of the year,” the company said.
Megaworld’s rental business, which includes offices, malls and commercial centers, remained the primary contributor to the growth in the first-half earnings.
Rental income soared 20 percent to P5.83 billion this year, from P4.84 during last year. Residential revenues, on the other hand, were flat at P16.77 billion during the period.
Last year the company broke the 1 million-square-meter (sq m) mark in total leasable spaces, from both office and commercial and retail spaces available in its various developments across the country.
Office-space inventory stood at 851,000 sq m, while commercial and retail spaces reached 273,000 sq m.
“Megaworld remains to be the largest office developer and lessor in the country,” the company’s statement read. “We are well-positioned to retain this leadership as we are on track to surpass the 1 million-square-meter mark in office-space inventory alone by the end of this year.” Megaworld has also been ramping up its hotel business, which rose 10 percent to P648 million, from P590 million last year.
During the second quarter, the company launched its third local hotel brand in Boracay Newcoast, the 559-room Savoy Hotel Boracay, which is known to have the country’s first-ever party pool arena.
“On the long term, we see our hotel operations to be a major contributor to our growth as we continue [to] accelerate our hotel developments to support the country’s tourism industry,” the company said. “For Megaworld Group alone, we hope to complete an additional 3,500 rooms in our hotel portfolio in the next five years.”
Late last year the company introduced the concept of “integrated lifestyle community” (ILC) in property development. The firm said the ILC features nature as extended amenities for its expansive residential development.
Megaworld said it currently has a roster of 22 integrated urban townships and ILCs across the Philippines.