Megaworld hit the Php10 billion mark for 2015 in net core income, thanks to the strong take-up of leasing properties.
Andrew Tan–led Megaworld announced the brand’s overall net core income of Php10.4 billion for 2015. The 10.58 percent increase from Php9.40 billion the previous year, according to the property giant, is largely led by the growth of its leasing business from Php7.07 billion to Php8.73 billion, a 23.46 percent increase.
“Our rental business had been growing exponentially the last five years. We are confident that we will reach the Php11-billion target by the end of this year as we see continuous growth in consumer spending as well as further expansion of BPO companies, particularly in key growth areas in Visayas and Mindanao where Megaworld is already present, ” Megaworld chief financing officer Francis Canuto said.
Consolidated revenues not including recurrent gains reached Php44.81 billion in 2015, a 9.37 percent increase from 2014’s Php40.97 billion. Other core businesses, the brand revealed, likewise displayed double-digit growth last year.
“We already have a strong roster of townships across Luzon, Visayas and Mindanao that are backed by adequate land-banking and carefully thought masterplans. We have already mastered the art of township development. What we want to put focus on now is how to further grow our rental portfolio, which is integral to being a township developer. Malls and offices are key components of an urban township,” Canuto explained.
Earlier this year, the Megaworld Group announced plans to focus their 2016 capital expenditure of Php55 billion to further increase their commercial and office space portfolio. Plans include the launch of 14 office towers, malls, and commercial centers in McKinley West and Uptown Bonifacio in Taguig; Mactan Newtown in Cebu; Iloilo Business Park in Iloilo; Arcovia City in Pasig; Southwoods City in Cavite; and Alabang West in Muntinlupa.
Main image courtesy of the Megaworld Corporation official website