Condominium and office builder Megaworld Corp. said core net income grew 10.6 percent in 2015 to P10.4 billion from P9.4 billion in 2014 on strong real estate states.
Megaworld said core net income excluded the P181-million non-recurring gains booked in 2015.
Megaworld said consolidated revenues, excluding non-recurring gains, rose 9.4 percent year-on-year in 2015 to P44.81 billion from the previous year’s P40.97-billion.
Core businesses, including residential, rental and hotel operations, posted double-digit growth in 2015.
The group’s leasing business saw the fastest growth in 2015, as rental income grew 23.46 percent.
Leasing income from malls, commercial centers and offices reached P8.73 billion in 2015, up from P7.07 billion in 2014.
“Our rental business had been growing exponentially the last five years. We are confident that we will reach the P11-billion target by the end of this year as we see continuous growth in consumer spending as well as further expansion of BPO companies, particularly in key growth areas in Visayas and Mindanao where Megaworld is already present, ” Megaworld chief finance officer Francis Canuto said.
Canuto said the company also remained focused on developing more integrated township projects across the country.
“We have already mastered the art of township development. What we want to put focus on now is how to further grow our rental portfolio, which is integral to being a township developer. Malls and offices are key components of an urban township,“ Canuto said.
Megaworld earlier said it would spend P55 billion in capital expenditures this year primarily to build more office and shopping malls to boost rental portfolio.
It said at least 75 percent of the P55 billion would be used for construction of new malls, commercial centers, office buildings and residential projects in townships.
The remaining 25 percent will be used for land acquisition and investment properties.
Megaworld said it would start developing new townships in Pasig City, Bacolod and Pampanga. It will also ramp up office and mall developments across existing townships.