LISTED real estate developer Megaworld Corp. saw a 35% increase in its attributable net income for the second quarter (Q2) to P5.6 billion from P4.15 billion last year, on growth across its residential, leasing, and hospitality businesses.
April-to-June revenue climbed by 10% to P22.16 billion from P20.22 billion a year ago, Megaworld said in a regulatory filing on Tuesday.
For the first half, Megaworld grew its attributable net profit by 25% to P10.7 billion from P8.55 billion in the same period last year.
Revenue for the first six months increased by 10% to P43.09 billion from P39.1 billion the prior year.
“What excites us most is the broad-based strength we are seeing — offices, malls, residential, and hotels are all growing. That gives us confidence as we scale further,” Megaworld President and Chief Executive Officer Lourdes T. Gutierrez-Alfonso said.
“We’re pushing forward with more townships, smarter spaces, and deeper integration across our developments, but at the same time, making sure that we build responsibly and sustainably,” she added.
Office leasing revenues by Megaworld Premier Offices increased by almost 18% to P3.7 billion during the second quarter and climbed by 17% to P7.4 billion in the first half of the year, led by the contribution of new assets and leases, as well as sustained rent escalations.
Megaworld Premier Offices closed nearly 100,000 square meters (sq.m.) in new leases during the quarter, driven by expansions from business process outsourcing and multinational companies.
Leasing revenues of Megaworld Lifestyle Malls went up by 9.4% to P1.67 billion in the second quarter and grew by 10% to P3.33 billion in the first half, on growing consumer foot traffic and new leases.
The mall business saw more than 30,000 sq.m. of new tenant openings, as well as new retail spaces at Lucky Chinatown in Binondo.
Hotel revenues rose by 12% to P1.39 billion in the April-to-June period and improved by 19% to P2.81 billion in the first six months, on higher room rates and more room keys compared to the previous year.
In June, Megaworld announced its partnership with global hotel chain Accor to elevate and expand its current hotel portfolio.
Real estate sales grew by 10% to P14.03 billion in the second quarter and increased by 9% to P27.12 billion in the first half, due to residential demand across projects in both Metro Manila and key growth centers in the provinces, along with ongoing project completions.
Key contributors include Uptown Bonifacio, McKinley Hill, McKinley West, Eastwood City, ArcoVia City, Iloilo Business Park, Maple Grove, and The Upper East Bacolod.
Megaworld recently launched its 36th township, the 116-hectare Nascala Coast, in Nasugbu, Batangas.
The P5-billion township, to be developed by Megaworld subsidiary Global-Estate Resorts, Inc., will feature residential villages, beachside condominiums, commercial hubs, as well as leisure and wellness facilities.
Megaworld’s 36 townships cover approximately 7,000 hectares.
The company is on track to launch another township development within the year as part of its continued provincial expansion.
The company also targets growing its office gross leasable area (GLA) to two million sq.m. by 2030, and its retail GLA to one million sq.m. in five years. These targets will bring Megaworld’s total leasing portfolio GLA to three million sq.m. by 2030.
Total assets reached around half a trillion pesos as of end-June.
Megaworld shares rose by 1.01% or two centavos to P2.01 per share on Tuesday. — Revin Mikhael D. Ochave
