MANILA, Philippines - Megaworld Corp., the flagship property unit of tycoon Andrew L. Tan, nearly quadrupled its first half earnings on the back of an asset sale and the strength of real estate operations.
In a regulatory filing, Megaworld said net income surged 289 percent to P16.44 billion from P4.23 billion a year ago, after booking an P11.62-billion, non-recurring gain from the sale of shares in Travellers International Hotel Group Inc. to parent firm Alliance Global Group Inc. (AGI).
“I am confident that Megaworld can sustain its core growth momentum as we continuously expand all business segments in our townships across the country,” said Tan, the company’s chairman and CEO.
Total revenues of Megaworld, together with subsidiaries Global Estate Resorts Inc. (GERI), Empire East Land Holdings and Suntrust Properties, jumped 85 percent to P31.96 billion in the first semester from P17.28 billion a year ago.
Megaworld attributed the growth to “strong residential sales in its various townships, particularly in Newport City, Uptown Bonifacio, McKinley Hill and Eastwood City; and higher leasing income from its office and retail portfolio.”
Reservation sales rose nine percent to P47 billion while rental income from office developments and lifestyle malls climbed 22 percent to a record P3.44 billion in first half.
In the first semester, the property group launched 16 residential projects: six for main brand Megaworld, four for middle income developer Empire East, five for affordable housing unit Suntrust and one for GERI.
In June, Megaworld completed the consolidation of Tan’s real estate companies with the acquisition of the 49.2-percent stake of AGI in GERI. It increased Megaworld’s shares in GERI to 80.4 percent and beefed up its total landbank to around 4,000 hectares.
Megaworld aims to further solidify its position as the leader in office developments by completing another 112,000 square meters (sqm) of office space this year. By the end of 2014, the company will have around 712,000 sqm of office space in its portfolio.
For the residential side, Megaworld will complete additional commercial and retail space, on top of the existing 304,083 sqm of commercial and retail space portfolio. It will complete the construction of the Venice Grand Canal Mall in McKinley Hill and some commercial strips at The Mactan Newtown in Cebu.