D.M. WENCESLAO and Associates, Inc. (DMW) saw its attributable net income decline by 5.1% to P367.47 million for the second quarter (Q2) from a profit of P387.29 million last year due to lower revenues for the period.
In a stock exchange disclosure, the company’s gross revenue contracted to P926.32 million for the April-to-June period, lower by 5.2% compared with the P977.04 million a year ago, its financial statement showed.
Its combined expense, however, declined to P383.41 million for the second quarter from P494.83 million.
For the first half, DMW’s attributable net income climbed to P918.18 million, 0.6% higher than the P912.95 million last year due to lower gross expenses for the first six months.
“Our performance in the first half of 2024 highlights the stability and robust foundation of our business model,” said DMW Chief Executive Officer Delfin Angelo C. Wenceslao.
The listed property developer generated gross revenue of P1.89 billion, significantly lower than last year’s P2.1 billion revenue.
DMW’s gross expense for the January-to-June period dropped by 24.2% to P733.65 million compared with the P967.51 million expense from a year ago.
“Our best-in-class anchor locators — including top logistics multinationals, one of the country’s largest malls, major grocery warehouse chains, and the Philippines’ leading healthcare institution — ensure stable, long-term income streams. These partnerships, which extend up to 50 years, offer not only high margins but also significant growth opportunities through percentage-based sales collections,” Mr. Wenceslao said.
The company also attributed its earnings growth for the first semester to its strong leasing operations.
DMW said commercial building revenues posted P669 million due to a higher gross leasable area of 235,846 square meters (sq.m.) in the first half compared with the 162,351 sq.m. last year.
“This growth was fueled by robust leasing activities across the whole portfolio, with marquee logistics and traditional tenants accounting for the majority of commercial occupancy,”the property developer said.
Land rentals rose to P689 million, fueled by lease expansion, while residential revenues were P235 million, it said.
At the local bourse on Wednesday, shares in the company closed 18 centavos or 3.28% lower at P5.31 per share. — Ashley Erika O. Jose
