Andrew Tan’s Megaworld posts 15% jump in 9-mo profit

MANILA, Philippines – Property developer Megaworld Corporation reported higher earnings in the first 9 months compared to a year ago on higher residential sales and rental income.

In a statement to the Philippine Stock Exchange Wednesday, November 13, Megaworld said its January-September net income jumped 15% to P6.55 billion from P5.7 billion in the same period of 2012.

Consolidated revenues went up 12% to P26.68 billion from P23.85 billion.

The company said it enjoyed strong sales from residential projects in townships Newport City, Uptown Bonifacio, Mckinley Hill and Eastwood City.

It said reservation sales for the first 9 months continued to be robust, boosting the company’s optimism about the launch of another township project in Pasig City.

“We are excited to launch next year a new P35-billion mixed-use project called Woodside City near Eastwood City along C-5,” said Megaworld chairman and chief executive officer Andrew Tan.

Megaworld’s reservation sales in the January-September period amounted to P56 billion, up 20% from P46.5 billion in 2012.

Meanwhile, rental income from office developments that cater to business process outsourcing firms and lifestyle malls totaled P4.34 billion, 20% higher than last year’s P3.61 billion.

“We will fast-track our BPO office developments and lifestyle malls to support the growing demands of the BPO industry and the retail consumers. This will enable us to make 2014 a record year in terms of rental income,” said Tan.

By the end of 2013, the company expects to have more than half a million square meters of net leasable office space.

Megaworld is one of the country’s leading real estate developers. It has so far completed over 310 residential and office buildings totaling 5.3 million square meters.

It has about 178 residential, office and hotel buildings with total area of 5.2 million square meters under development.