Megaworld net income up 11% to P6.69B in 1st half of 2017

MANILA, Philippines – Andrew Tan-led property developer Megaworld saw its net income rise by double digits in the 1st 6 months of 2017, driven by office and commercial space leasing.

In a disclosure to the Philippine Stock Exchange (PSE) on Thursday, August 10, Megaworld reported a net income of P6.69 billion for the January to June period, up 11% from the P6.03 billion seen in the same period last year.

Net income attributable to parent company Alliance Global's shareholders also hit 11% growth to P6.44 billion in the 1st half of 2017, from P5.81 billion during the 1st 6 months of 2016.

The property developer said the rise was due mostly to rental income from office spaces, malls, and commercial centers, which rose by 20% to P5.83 billion from P4.84 billion.

Megaworld broke the one-million-square-meter mark in total leasable spaces, from both office and commercial or retail spaces available across the country last year. Its office space inventory stood at 851,000 square meters, while commercial and retail spaces reached 273,000 square meters as of June.

Residential revenues, meanwhile, hit P16.77 billion for the January to June period.

Megaworld has also been pushing its hotel business, with revenues rising 10% from P590 million during the 1st half of 2016 to P648 million in the same period this year.

The firm launched its 3rd homegrown hotel brand in Boracay Newcoast, the 559-room Savoy Hotel Boracay, during the 2nd quarter of 2017.

"It has been a strong 1st half for Megaworld as we continue the trajectory of our rental income while maintaining revenues for our residential business. Across businesses, there is an indication that we will continue our double-digit growth until the end of the year," said Megaworld senior vice president and treasurer Francis Canuto in a statement.

Megaworld has a roster of 22 integrated urban townships and integrated lifestyle communities across the country. – Rappler.com