Property giant Megaworld Corporation was able to secure office lease deals in 2020 despite work-from-home arrangements due to the coronavirus pandemic, signaling recovery in some segments of the property market.

Its mall business, however, is still struggling to get back up due to COVID-19 restrictions.

The Andrew Tan-led company was able to lease out some 130,000 square meters of fresh office space in Iloilo, Quezon City, and Fort Bonifacio in Taguig City.

“At this point, we can say that our office business is the most stable income generator in our company’s revenue stream with or without this health crisis, and we continue to focus on the expansion of this business in the years to come and further strengthen our leadership in the country’s office property sector,” said Kevin Tan, Megaworld’s chief strategy officer.

Around 78% of these new leases were part of the expansion programs of existing occupants, while the rest were taken by new clients.

In addition to new leases, Megaworld also bagged lease renewals of around 145,000 square meters of office space from various company tenants in 2020.

“These are mostly companies operating BPOs, e-commerce, logistics, and finance. And we are very happy to see the strong interest in our office developments in Iloilo Business Park. Approximately 20% of new leases have been booked there and we even cemented our dominance in terms of market share in the Iloilo office market,” Tan said.

Earnings dip

Despite striking new deals, Megaworld still ended 2020 in the red, with net income plunging by 45% to P10.6 billion, while revenues decreased by 35% to P43.5 billion.

Megaworld noted that recovery was seen in the 4th quarter, as malls and hotels opened up during the holidays. (READ: From malls to banks: The pandemic’s domino effect)

Real estate sales also grew by 22% in the 4th quarter from the 3rd quarter of 2020, while reservation sales grew 85% quarter-on-quarter.

On a year-to-date basis, rental income slipped by 23% to P12.9 billion, while real estate sales dipped by 42% to P24.9 billion.

Megaworld currently plans to launch 26 integrated urban townships, integrated lifestyle communities, and lifestyle estates across the country. – Rappler.com