Condominium and office builder Megaworld Corp. said net income attributable to parent company climbed 13.1 percent in the first nine months to P11.29 billion from P9.98 billion in the same period last year, boosted by strong rental revenues.
Megaworld said in a disclosure to the stock exchange consolidated revenues reached P41.76 billion in January to September, up by 12.56 percent from P37.10 billion a year ago.
Leasing revenues jumped 18.6 percent to P10.4 billion from P8.82 billion, on aggressive expansion of its office and retail businesses.
Real estate sales, which accounted for the bulk of total revenues, rose 9.9 percent to P23.04 billion amid steady improvement in condominium sales.
“We have been tracking a promising trajectory during the first nine months of 2018, and we are optimistic to finish the year strong. The residential landscape has been experiencing a resurgence, which has been very evident in its growth during the past quarters. Our rental business for both offices and Megaworld Lifestyle Malls remains to be the fastest growing segment of the company,” Megaworld senior vice president and treasurer Francis Canuto said.
Gross margins on residential segment saw a strong improvement of more than 200 basis points year-on-year.
“We have already rolled out quite a number of residential projects this year, which reflects the kind of demand that we have been seeing in 2018. Megaworld will always be market driven, and as long as we see this type of demand on the ground, then we will continue to launch projects aggressively. Moreover, we have already secured the land to do this, which is key in being a leader in this industry,” said Canuto.
Hotel revenues hit P1.03 billion in the first nine months, up 8.45 percent from P950 million a year earlier.
Megaworld said net income in the third quarter reached P4.15 billion, up 14 percent from P3.64 billion recorded in the same quarter in 2017.
The company said it planned to launch P80 billion worth of residential projects this year. Reservation sales are expected to reach a record P110 billion.