MEGAWORLD Corp. said its income surged 11 percent in the three months of the year ending March to P2.9 billion, from P2.6 billion last year on strong rental income and residential revenues.
Consolidated revenues of the property development arm of businessman Andrew Tan, which includes Global-Estate Resorts Inc., Empire East Land Holdings Inc. and Suntrust Properties Inc., amounted to P12 billion for the period, up 5 percent, from P11.5 billion in the same period last year.
Residential revenues, mostly from its inventory of condominiums and villages across the country, continued to contribute around 70 percent of the company’s revenue pie.
Rental income expanded to a record P2.9 billion during the first quarter of 2017, up 26 percent from last year’s P2.3 billion.
The company’s recurring income, which comes from office, commercial and shopping-mall rentals, contributed around 24 percent to the total quarterly revenues.
Hotel revenues grew 23 percent to P335 million, compared to the P271 million last year as the company expanded its homegrown hotel brands in Iloilo and Pasay.
“Our long-term goal is to strengthen our recurring income base while we maintain our leadership in residential developments. We already have a solid landbanking in place. All we have to do is to maximize the use of these lands to further expand our presence, especially in key growth areas in the provinces,” the company said.
Megaworld this year is set to launch 20 residential projects in Fort Bonifacio in Taguig, Iloilo, Pampanga, Cavite, Rizal and in Boracay, covering a total sales value of around P31.2 billion.
“We are also very keen about prospects for tourism. This is a big opportunity for us. We hope to support the government’s tourism programs by building more tourism-related developments, such as hotels,” it said.