PROPERTY developer DM Wenceslao and Associates Inc. said it may spend P4 billion this year as it continues the construction of projects in Aseana City in Parañaque.
Herherson Asiddao, the company’s chief finance officer, said the capital expenditure (capex) this year is double that of last year’s by close to P2 billion in actual spending.
The company is allotting between P3 billion and P5 billion in capex every year or about a five-year capex of P21 billion.
For 2018, DM Wenceslao had a net income of P1.91 billion, 23 percent higher from the previous year’s P1.55 billion.
Revenues amounted to P2.15 billion, of which P1.9 billion and about 88 percent of it coming from recurring income from rentals.
Leasing of land grew 5 percent to P965.2 million, while rentals of buildings and other revenues related to leasing increased 77 percent and 90 percent to P762.1 million and P173.8 million, respectively.
Meanwhile, other income in connection with the settlement of the company’s joint-venture agreements was P1.2 billion.
“We have a clear set of strong results and compelling opportunities ahead. Profitability has consistently improved over the years, with net income increasing 26 percent annually since 2016. Our holistic approach to Aseana City master plan brings together our construction and real-estate development capabilities from project planning to property management,” said Delfin Angelo C. Wenceslao, the company’s CEO.
“This full scope of services provides us with a diversified earnings base and substantial recurring revenue streams. More importantly, it positions us well to complete approximately 380,000 square meters of leasable and salable properties by 2022 and grow Aseana City into a next-generation central business district within Metro Manila,” he said. Throughout 2018, the company said it made progress in spearheading the development of Aseana City through implementing its pipeline projects. Earlier in the year, it has delivered its third office building, Aseana Three, which added 30,000 sq m to its total leasable gross floor area.
Construction of 8912 Asean Avenue (formerly Aseana Four) has also started in light of sustained office demand and is on track for 2020 completion.
During the fourth quarter, it unveiled its second residential project. MidPark Towers is a four-tower condominium development with 42,000 sq m in salable floor area positioned as luxury property.
“The rising economic activity and employment opportunities in the Manila Bay area make the residential segment highly promising. We have expanded our footprint in this fast-growing market, which we expect to rise further in 2019. MidPark Towers has achieved significant sales in the few weeks it has been available, where one tower was sold in one month since the project was launched in November. As of February 15, it has sold an aggregate of P2.811 billion worth of units—an excellent performance considering we are less than two months into the year,” it said.
In line with the new accounting standards PFRS 9 and 15, the company restated its consolidated statements of profit and financial position. The new standard impacts the presentation of recognition of residential revenue and costs, while having no impact on cash flow.