Megaworld says office business 'most stable income generator' despite pandemic


Posted at Apr 14 2021 11:17 AM

Megaworld says office business 'most stable income generator' despite pandemic 1
Office buildings in the Iloilo Business Park township. Handout

MANILA - Megaworld Corp said Wednesday its office business "is the most stable" income generator after finalizing new office leases last year despite the impact of the COVID-19 pandemic.

Around 135,000 sqm of office space inventory were leased out in its townships in Iloilo, Quezon City, and Fort Bonifacio in Taguig, the Andrew Tan-led property firm said in a disclosure to the stock exchange. 

Leases were made by mostly Business Process Outsourcing, e-commerce, logistics and finance firms, of which about 20 percent were booked in its Iloilo Business Park, said Megaworld strategy officer Kevin Tan.

There's also a total of 145,000 sqm of office space lease renewals, Megaworld said.

Megaworld Premier Offices ended 2020 with a P10.4 billion in rental revenues, the company said.

“At this point, we can say that our office business is the most stable income generator in our company’s revenue stream with or without this health crisis, and we continue to focus on the expansion of this business in the years to come and further strengthen our leadership in the country’s office property sector,” Tan said.

Despite slower growth, office space demand remains positive in the first quarter buoyed by BPOs and the booming e-commerce segment, Leechiu Property Consultants earlier said. 

In 2020, net income dropped 45 percent to 10.6 billion, while consolidated revenues declined by 35 percent to 43.5 billion. Net income attributable to parent company is at P9.9 billion, Megaworld said.

Signs of "remarkable recovery" were seen in the mall, hotel and residential businesses in the fourth quarter as quarantine measures eased around the holiday season. 

"The adjustments made by our various business segments amidst the challenging environment allowed us to benefit from the gradual reopening of the economy," Tan said.

However, Metro Manila and other neighboring provinces were placed under modified enhanced community quarantine until the end of the month as confirmed daily COVID-19 cases rise. 

Megaworld has 26 integrated urban townships, lifestyle communities and estates across the country.