Both Megaworld and GERI displayed growth in net income for the January-June 2015 period.
Andrew Tan-led Megaworld Corporation and its subsidiary, integrated leisure and tourism property developer Global-Estate Resorts, Inc. (GERI), recently announced their net income for the first half of 2015.
Megaworld revealed a 12.51% jump to Php 5.43 billion from Php 4.82 billion during the same period in 2014. According to the brand, the increase was driven by the expansion of their integrated urban townships and mixed-use communities in the country.
“The backdrop of the Philippines’ vibrant economy continues to benefit the local property market as evident in our first half results," Megaworld chief finance officer Francis Canuto said.
A large contributor to the growth is seen to be the company’s performance in the rental market, including offices, malls, and commercial centers. For the first half of the year, Megaworld’s leasing spaces earned an income of Php 4.21 billion, a 22.25% upsurge compared to Php 3.44 billion year-on-year in 2014.
Earlier this year, Megaworld revealed plans to spend arounf Php 20 bilion for 12 office towers in Fort Bonifacio over the next three years, increasing their current office space portfolio from 300,000 to 650,000 sqm.
“We remain steadfast in strengthening our recurring income businesses. This year, we are opening new malls and office towers that will allow us more opportunities for leasing growth. Megaworld is on-track in achieving its P10-billion target in rental income next year,” Canuto said.
Income for residential developments also increased for 2015; from Php 12.01 last year, sales jumped by 12% to Php 13.43 billion.
“We look forward to another bright year for Megaworld as we focus our efforts on aggressively expanding our townships across the country, and providing new and innovative offerings in residential, office and commercial businesses," Canuto added.
Oceanway Residences in Boracay Newcoast
Meanwhile, GERI’s income also displayed growth for the first half of the year. The Megaworld subsidiary posted a net income growth of 69.6%, from Php 200 million in 2014 to Php 339 million for the same period this year. For the first six months of 2015, GERI’s consolidated revenues jumped to Php 2.1 billion, a 49.9% increase from Php 1.41 billion last year.
“Just a year after its consolidation into the Megaworld Group, GERI is now experiencing bullish and remarkable growth across business segments," GERI president Monica Salomon noted.
According to GERI, real estate sales accounted for 73% of the consolidated revenues. For the first half of 2015, sales amounted to Php 1.5 billion, a 60.4% year-on-year growth from 2014’s Php 954 million. Sales were said to be from residential projects in Boracay Newcoast in Boracay, Sta. Barbara Heights in Iloilo, Twin Lakes in Batangas, Southwoods City in the Cavite-Laguna area, and Alabang West in Las Piñas.
"We expect to continue the momentum of our strong performance in the coming years because of GERI’s expansive land bank that are still in the pipeline for future development,” Salomon stated.
GERI is currently completing five leisure and tourism townships in various parts of the country covering 2,146 hectares of land, namely the 150-hectare Boracay Newcoast in Boracay Island, Aklan; the 1,200-hectare Twin Lakes in Laurel, Batangas; the 561-hectare Southwoods on the boundaries of Carmona, Cavite and Biñan, Laguna; the 173-hectare Sta. Barbara Heights in Sta. Barbara, Iloilo; and the 62-hectare Alabang West.