Megaworld posts 31% surge in 1H net income

Megaworld, the country’s pioneer developer of integrated urban townships, saw its net income soar by 31% to P8.8-billion in the first half of the year as the company continues to pull away from the pre-pandemic performance across most of its core businesses.

Net income attributable to the parent company’s shareholders grew by 34% to P7.9-billion from last year’s P5.9-billion.

Consolidated revenues grew by 17% to P32.0-billion as all core businesses registered robust performance during the period.

“Our steadfast focus on our township model allowed us to sustain our strong performance into the second quarter of the year. With increasing demand for residential and commercial properties outside Metro Manila, we have properly positioned ourselves achieve growth through strategic land banking. We also worked doubly hard in coming up with new, innovative, and sustainable product offerings in order to further strengthen our leadership as a pioneering real estate company,” says Kevin L. Tan, chief strategy officer, Megaworld.

Real estate sales for the period grew by 12% year-on-year to P19.1-billion, driven by the higher completion rate of various projects. Reservation sales increased by 49% to P76.1-billion. This figure already accounts for 59% of the company’s year-end reservation sales target of P130-billion.

During the first half of the year, the company saw a strong uptick in the demand for residential projects in two Taguig townships, particularly in McKinley West and Uptown Bonifacio.

From January to June this year, Megaworld already launched P28.2-billion worth of projects.

In the second quarter alone, Megaworld has already launched four big projects in Pampanga, Iloilo, Rizal, and Palawan. These include Savoy Hotel Capital Town in the City of San Fernando, Pampanga worth P4.2-billion; Firenze Residences in Iloilo Business Park worth P4.2-billion; Bellara Tower 2 in Highland City, Cainta, Rizal worth P3.7-billion; and Oceanfront Premier Residences in Paragua Coastown, San Vicente, Palawan worth P2.3-billion.

Leasing revenues, on the other hand, grew by 17% to P8.8-billion on the back of the company’s stable office segment and the continued recovery of mall rental income.

Megaworld Premier Offices saw a 4% increase in rental income during the period to P6.3-billion from the P6.0-billion recorded last year as rental rates continue to escalate coupled with new signing transactions. BPOs remained as the top rental contributors of Megaworld Premier Offices, paving the way for a stable growth of the company’s rental income.

Megaworld Lifestyle Malls also continued its recovery momentum with a 71% revenue growth to P2.5-billion during the first half of the year. The strong growth was mainly driven by increased spending and higher rents as the company started to collect full rents beginning this year.

Recently, Megaworld Lifestyle Malls announced it has created a company to enter into a multimillion-peso agreement with Finland-based SuperPark United to bring the global indoor activity park brand SuperPark to the Philippines.

Megaworld Hotels & Resorts, likewise, sustained its stellar performance with hotel revenues surging by 58% to P1.7-billion in the first half of the year. This was largely driven by the promising growth of local tourism and mobility, especially in two Megaworld townships, particularly in the tourism areas of Newport City and Twin Lakes. As a result, Megaworld Hotels & Resorts saw improved average occupancy and room rates compared to last year.

Just last month, Megaworld Hotels & Resorts announced its plans to build the P1.5-billion Mactan Expo Center, an expansive 2,500- seating capacity standalone convention center inside The Mactan Newtown township in Lapu-Lapu City, Cebu.

To date, Megaworld has 30 master‐planned 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 Biñan, Laguna and Carmona, Cavite (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) in Bacolod City; Northill Gateway (50 hectares) in the boundaries of Bacolod City and Talisay City 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 Cainta, Rizal (24 hectares); Arden Botanical Estate in the boundaries of Trece Martires and Tanza, Cavite (251 hectares); Paragua Coastown in San Vicente, Palawan (462 hectares); Northwin Global City in Marilao and Bocaue, Bulacan (85 hectares); Winford Resort Estate in Manila City (3 hectares); and Sherwood Hills in Trece Martires, Cavite (340 hectares).