DM Wenceslao net income up 9% to P507 M in Q1

MANILA, Philippines — D.M. Wenceslao & Associates Inc. (DMWAI) posted a net income of P507.1 million in the first quarter, up nine percent from a year ago.

The company raked in P595.6 million in revenue, up 13 percent because of higher office lease rates and more residential projects.

Of the total revenue, P493.9 million or 83 percent are recurring income which includes rentals from land, building and other revenues such as common use service area fees.

Delfin Angelo Wenceslao, DMWAI chief executive officer, said the company’s residential business would remain the major growth driver.

“Our residential segment will remain the main growth driver for the rest of the year following the steady progress of our project completion and ongoing preselling activities. As of April 30, our pre-sales of MidPark Towers have reached P3.6 billion from P2.8 billion reported in mid-February. Growth momentum will also come from land sale,” Wenceslao said.

He said the company would continue to maximize opportunities in growing property sector.

During the period, leasing of land increased four percent to P255.2 million while rentals of buildings and other revenue related to leasing rose by 17 percent and seven percent to P193.5 million and P45.1 million, respectively. Sale of residential condominium units surged almost ninefold to P100 million.

DMWAI has no new commercial buildings programmed for completion this year, but the office segment continued to enjoy strong double-digit growth driven by solid underlying pricing of negotiated lease renewal rates.

Average lease rate at Aseana One, which was delivered in 2012, has already increased 40 percent year-on-year to P870 per square meters from P620 per sqm.

During the quarter, DMWAI began vertical construction of Parqal and MidPark Towers. Parqal is part of Aseana City’s greenway, a pedestrian park and promenade that stretches from Diokno Avenue to Macapagal Avenue with 67,000 sq.m. leasable floor area.

MidPark Towers, meanwhile, is a four-tower residential project with 42,000 sqm saleable area. It was launched in November 2018.

DMWAI, which listed in the Philippine Stock Exchange last year, is an integrated property developer with expertise in land reclamation, construction and real estate development.