MANILA, Philippines – Property developer Megaworld’s net income in the first half of 2014 surged by 289 percent on the back of strong residential sales as well as higher leasing income from its offices and retail projects.
Megaworld said its net income in the first half of the year jumped to P16.44 billion from P4.23 billion posted in the same period last year due to strong residential sales in its township projects particularly in Newport City, Uptown Bonifacio, McKinley Hill and Eastwood City.
“I am confident that Megaworld can sustain its core growth momentum as we continuously expand all business segments in our townships across the country,” Megaworld chairman and chief executive Andrew Tan said in a disclosure to the Philippine stock exchange on Monday.
Megaworld said the profit included the P11 billion non-recurring gain from the acquisition and sale of its subsidiary and associate.
The listed firm completed the consolidation of Tan’s real estate companies under Megaworld with the acquisition of the 49.2 percent stake of Alliance Global Group Inc. in Global Estate Resorts Inc. (GERI) in June.
The deal increased Megaworld’s majority stake in GERI to 80.4 percent and increased its total land bank to around 4,000 hectares.
Megaworld’s rental income from office developments and lifestyle malls also posted a record P3.44 billion in the first six months of the year, a 22 percent jump from the P2.83 billion in the same period last year.
It total revenues swelled by 85 percent to P31.96 billion in the first half of 2014 from P17.28 billion in the same period in 2013.
In the first half of the year, Megaworld and its subsidiaries launched 16 residential projects in Metro Manila, Baguio, Iloilo, Cebu, Southwoods City, and Batangas.
The firm said it is set to complete another 112,000 square meters of office spaces this year in Uptown Bonifacio, The Mactan Newtown, and Iloilo Business Park.
More commercial and retail spaces in McKinley Hill and Mactan Newtown are also expected to be completed this year.