MEGAWORLD Corp. on Monday said net income grew six percent year on year in the first quarter to P6.2 billion, backed by stable leasing revenues and stronger hotel operations that helped cushion flat real estate sales.
In a disclosure, the property developer said consolidated revenues edged up to P21.6 billion as all core business segments posted modest gains, with leasing remaining a key driver and as income from malls, offices and hotels expanded six percent to P5.6 billion.
Within the segment, retail operations led the growth and mall revenues climbed nine percent on sustained consumer spending and new store openings across Megaworld’s townships.
Office leasing revenues also expanded four percent to P3.8 billion, backed by continued demand from business process outsourcing firms and multinational companies.
The company said it had already secured the bulk of lease renewals due this year, indicating stable occupancy in its office portfolio.
Hotel revenues, meanwhile, rose eight percent to P1.5 billion on higher room rates and increased activity in the meetings, incentives, conferences and exhibitions (MICE) sector.
The company had formally announced its entry into the MICE segment during the quarter with the opening of a new convention facility in Mactan, Cebu.
Residential sales were largely unchanged year on year at P13.3 billion but compared to the preceding quarter, revenues were firmer as construction progress supported revenue recognition.
Megaworld said its first-quarter performance highlighted the resilience of its recurring income streams which continue to anchor earnings despite external headwinds.
“Our first-quarter results reflect the compounding strength of our recurring income base,” President and CEO Lourdes Gutierrez-Alfonso said, adding they remain focused on maintaining a strong balance sheet.
The developer is also expanding outside Metro Manila, launching a 97-hectare township in Negros Occidental early this year as part of its push into provincial growth areas.
Megaworld has said it was targeting to grow its leasing footprint to three million square meters by 2030 as part of its pivot toward more stable, recurring revenue sources.
The company’s shares added P0.01, or 0.48 percent, to close at P2.09 each on Monday. NAZYLEN JOY MABANGLO
