Megaworld income rebounds as real estate sales double in Q3

Megaworld, the country’s largest developer of integrated urban townships, grew its net income by 46% to P3.3-billion in the third quarter this year from P2.2-billion during the same period last year as the company begins its recovery phase with eased restrictions and gradual re-opening of the country’s economy.

Net income attributable to parent company’s shareholders was up 57% to P3.2-billion during the quarter from last year’s P2.0-billion. 

For the full nine months of the year, the company’s net income also grew 6% to P8.6-billion from last year’s P8.1-billion, while net income attributable to parent company’s shareholders increased by 10% to P8.2-billion from January to September compared to last year’s P7.4-billion.

Consolidated revenues during the quarter rose by 50% to P14.5-billion from last year’s P9.6-billion. For the first nine months, consolidated revenues, likewise, increased by 10% to P36.9-billion from last year’s P33.4-billion.

“The recovery momentum has started to pick up and we hope that the lowering of the alert levels especially in Metro Manila will continue until the year-end. As more people safely go out and enjoy the normal life, the better for business and our economy as a whole,” says Kevin L. Tan, chief strategy officer, Megaworld. 

The company’s real estate sales led the recovery, soaring 102% to P9.6-billion during the third quarter compared to P4.7-billion during the same period last year, reflecting the expansion in construction activities. Reservation sales for the quarter came in at P17.1-billion, reflecting a 35% increase year-on-year. Real estate sales from January to September was also up by 21% to P23.1-billion from last year’s P19.1-billion.

During the quarter, Megaworld launched its first eco-tourism township, the expansive 462-hectare Paragua Coastown in San Vicente, Palawan.

Megaworld Hotels & Resorts also posted 121% year-on-year growth in its hotel revenues to P552-million during the quarter, as the consistent performance of the company’s in-city hotels was bolstered by the opening of Kingsford Hotel, another new homegrown hotel brand, in the company’s Westside City township beside Manila Bay earlier this year. It also reflected an increase in revenues by 9% to P1.3-billion for the full three quarters of the year compared to last year’s P1.2-billion.

Megaworld Premier Offices’ rental income for the quarter was almost flat at P2.9-billion, but it reflected a 7% improvement from the previous quarter as new lease and renewal contracts came in during the quarter. The full nine-month revenues from office leasing were also almost flat at P8.1-billion. 

Megaworld Lifestyle Malls grew its rental income for the quarter by 16% year-on-year to P469-million. The improved performance was achieved even as the company continued to provide support to its retail partners by keeping existing rental concessions in place.

To date, Megaworld has 28 masterplanned integrated urban townships, integrated lifestyle communities, and lifestyle estates across the country, namely: Eastwood City in Libis, Quezon City, (18.5 hectares); Newport City in Pasay City (25 hectares); McKinley Hill (50 hectares), McKinley West (34.5 hectares), Uptown Bonifacio (15.4 hectares) and Forbes Town (5 hectares), all in Fort Bonifacio, Taguig City; Lucky Chinatown in Binondo, Manila (3 hectares); The Mactan Newtown in Lapu-Lapu City, Cebu (30 hectares); Iloilo Business Park in Mandurriao, Iloilo City (72 hectares); Sta. Barbara Heights in Sta. Barbara, Iloilo (173 hectares); Boracay Newcoast in Boracay Island (150 hectares); Twin Lakes in Alfonso, Batangas near Tagaytay (1,300 hectares); ArcoVia City in Pasig City (12.3 hectares); Southwoods City in the boundaries of Cavite and Laguna (561 hectares); Davao Park District in Lanang, Davao City (11 hectares); Alabang West in Las Piñas City (62 hectares); Eastland Heights in Antipolo, Rizal (640 hectares); Suntrust Ecotown in Tanza, Cavite (350 hectares); Maple Grove in General Trias, Cavite (140 hectares); The Hamptons Caliraya in Lumban-Cavinti, Laguna (300 hectares); The Upper East (34 hectares) and Northill Gateway (50 hectares) both in Negros Occidental; Capital Town Pampanga beside the Pampanga Provincial Capitol in the City of San Fernando (35.6-hectares); Westside City in the Entertainment City in Paranaque City (31 hectares); Empire East Highland City in Antipolo, Rizal (24 hectares); Arden Botanical Estate in the boundaries of Trece Martires and Tanza, Cavite (251 hectares); Paragua Coastown (462 hectares); and  Northwin Global City (85 hectares).