Megaworld Corp., the property unit of tycoon Andrew Tan, said net income attributable to its parent company climbed 12.7 percent in 2017 to P12.8 billion from P11.3 billion in 2017, led by the positive performance of the residential, office and commercial leasing businesses.
Megaworld said in a disclosure to the stock exchange consolidated revenues rose 7.7 percent last year to P50.4 billion from P46.8 billion in 2016.
Residential sales, which accounted for 70 percent of the group’s total revenues, expanded 4.5 percent to P11.8 billion from P10 billion.
Rental business, which covers both office and commercial space leasing, grew at a faster rate of 18.2 percent to P11.8 billion in 2017 from P10 billion a year earlier.
Megaworld earlier said it was expecting rental income to reach P20 billion by 2020 with a plan to add 1 million square meters of leasable space in its portfolio.
“We are still way beyond our targets and we see this momentum to continue until we reach our P20-billion target in annual rental income by 2020, or even beyond that. There is still so much opportunities to tap in the property market and we are ready for that,” Megaworld senior vice president Francis Canuto said.
The company said to sustain the growth momentum, it would allocate P60 billion for 2018 capital expenditures, of which 80 percent would be for the construction of mostly residential, office and commercial developments in various townships.
The remaining 20 percent would be allotted for land acquisition and other investment properties.
“The Megaworld Group is now present in more than 30 cities around the country. We will continue to be aggressive in developing more townships and integrated lifestyle communities across the country, most especially in the provinces,” Canuto said.
Megaworld launched two integrated township developments in 2017, including the 300-hectare Hamptons Caliraya in Cavinti, Laguna and the 35-hectare Maple Grove Commercial District in General Trias, Cavite.
Megaworld built over 660 residential developments, 54 office towers and 15 lifestyle malls in 23 masterplanned townships and integrated lifestyle communities across the Philippines.