Property developers Megaworld Corp. and Robinsons Land Corp. reported strong first-quarter earnings on significant growth in rental businesses.
Megaworld said in a disclosure to the stock exchange net income attributable to its parent company climbed 11.3 percent in the first quarter to P3.2-billion from P2.8 billion in the same period in 2017. Megaworld is the property unit of Alliance Global Group Inc., the holding company of billionaire Andrew Tan.
First-quarter consolidated revenues rose nearly 10 percent to P13.1 billion in January to March from P12 billion a year ago.
Sales from residential business, which accounted for 70 percent of total revenues, amounted to P8.8 billion, up 6 percent from a year earlier.
Rental income, which primarily came from leasing of office space and lifestyle malls, rose 16.5 percent to a record P3.4 billion from last year’s P2.9-billion, the fastest growth among the company’s business segments.
“The company remains on-track to achieving its goal of P20-billion in rental revenues by 2020. This year will be critical for us as we construct a record number of leasable office and mall spaces,” Megaworld senior vice president Kevin Tan said.
Meanwhile, RLC, the property unit of the Gokongwei group, said first-quarter net income attributable to equity holders of the parent company increased 12 percent to P1.54 billion on double digit growth in consolidated revenues.
Consolidated sales in the three-month period rose 17 percent to P6.35 billion from P5.43 billion booked in the same period last year.
Sales from the company’s commercial center division went up 7 percent to P2.88 billion, supported by mall rental revenue growth and rental revenue contribution of new malls.
The residential division delivered P2.1 billion in revenues, up 40 percent from P1.5 billion in 2017 while office buildings division contributed P864.7 million to the company’s revenues, up 18 percent year-on-year.
The group’s hotel division contributed P474.6 million to the company’s revenues, up 4 percent from the previous year.
RLC raised P20 billion from stock rights offering in February. The company said it planned to use the proceeds to finance the acquisition of land in various parts of the country.
