Office and condominium builder Megaworld Corp. saw its net profit climb 11 percent in the first half to P6.44 billion from P5.81 billion a year ago, as the company solidified its status as the country’s largest office developer and lessor.
Megaworld said in a disclosure to the stock exchange first-half consolidated revenues rose 5.4 percent to P24.27 billion from P23.02 billion in the same period last year.
Rental business, which includes offices, malls and commercial centers, went up 20 percent in January to June to P5.83 billion from P4.84 billion a year earlier.
Residential revenues, which continue to account for a big bulk of total revenues, was steady at P16.77 billion in the six-month period.
“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,” Megaworld senior vice president and treasurer Francis Canuto said.
Megaworld hit the one-million-square-meter mark in total leasable spaces, from both office and commercial/retail, in various developments last year.
Office space inventory stood at 851,000 square meters, while commercial and retail spaces reached 273,000 square meters.
“Megaworld remains to be the largest office developer and lessor in the country. We are well-positioned to retain this leadership as we are on-track to surpass the one-million square meter mark in office space inventory alone by the end of this year,” Canuto said.
The property developer owned by billionaire Andrew Tan also ramped up its hotel business, posting a 10-percent increase in revenues to P648 million from P590 million in the first half of 2016.
The company launched its third homegrown hotel brand in Boracay Newcoast―the 559-room Savoy Hotel Boracay in the second quarter.
“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. For Megaworld Group alone, we hope to complete an additional 3,500 rooms in our hotel portfolio in the next five years,” Canuto said.
Megaworld has a roster of 22 integrated urban townships and integrated lifestyle communities across the country.