As the pandemic restricted movements and business activities, several industries suffered losses. The property sector is no exception. The community quarantine measures resulted in the slowdown in real estate activities, including those in construction, marketing, and selling.
But while the necessary health measures dampened industry growth, property firms exhibited resilience all throughout the crisis. In fact, many acknowledged more innovations happened last year than ever before. As the protocols eased in the latter part of 2020, recovery was apparent. Let’s look at how Philippine real estate developers fared in the year of the pandemic.
SM Prime Holdings, Inc.
2020 Net Income: P18 billion
The Sy-led company topped the list of largest real estate developers in 2016. In 2020, it’s still the leading firm in the sector. However, it wasn’t immune to the ills brought by the pandemic.
From amassing P38.1 billion in 2019, the Sy-led company experienced a 53-percent decline in net income in the year of the pandemic, resulting in a net income of P18 billion. The massive blow was largely due to the drop in mall revenues, which went from P57.8 million in 2019 to P23.6 billion in 2020. Nonetheless, other business segments performed exceptionally well considering the massive financial impact of the health crisis.
The residential segment, for instance, led by the SM Development Corporation (SMDC), rose from P43.7 billion in 2019 to P46.5 billion in 2020, flexing a six percent growth. Meanwhile, the commercial properties business segment increased from P4.6 billion in 2019 to P4.8 billion last year.
SM Prime Holdings’ ongoing projects: Sands Residences, Mint Residences, Gem Residences, and South 2 Residences (vertical residential developments)
Filinvest Development
2020 Net Income: P11.5 billion
The Gotianun group-led holding company earned P11.5 billion in 2020, Business World reported. Similar to SM Prime, the lower rental revenues in malls contributed to the slump. Despite this, Filinvest saw growth in office leasing, as the company’s buildings continued to run operations throughout the pandemic last year.
Its banking arm EastWest Banking Corp. contributed P6.4 billion, four percent higher than the figure in 2019.
Filinvest Development’s ongoing projects: Mira Valley and Valle Dulce (horizontal residential), Activa Flex (vertical residential)
Megaworld Corporation
2020 Net Income: 10.6 billion
The Tan-owned property company earned P10.6 billion in 2020. Megaworld saw a resilient office business segment, as the rental revenues amounted to P10.4 billion in 2020, almost the same level in 2019.
The last quarter of 2020 also offered signs of recovery, as other business segments grew in sales quarter on quarter. Reservation sales increased by 85 percent quarter on quarter. The lifestyle malls and hotels jumped by 24 and 25 percent, respectively, from the third to the fourth quarter.
Megaworld’s ongoing projects: Belmont Hotel Iloilo (hospitality), Arden Botanical Village (horizontal residential), One Manhattan (vertical residential), Maple Grove (township)
Ayala Land, Inc.
2020 Net Income: P8.7 billion
The property giant raked in P8.7 billion, according to Business World. They had a 28 percent growth from the third to the fourth quarter of the year, signaling recovery from the financial downturn brought by the health crisis. The sales reservations jumped to P21.1 billion, almost 58 percent of the sales reservations pre-pandemic.
The mall revenues saw a 10 percent growth in the fourth quarter from the previous one, amounting to P1.7 billion. Meanwhile, the travel bubbles created by the tourism department helped in the recovery of the property giant’s hospitality real estate, bringing a 52 percent increase in revenues quarter on quarter.
Ayala Land’s ongoing projects: Crescendo and South Coast City (business district), ALogis (logistics facilities), One Vertis Plaza (office building)
Vista Land & Lifescapes, Inc.
2020 Net Income: P6.4 billion
The Villar-owned property firm earned P6.4 billion in 2020. Although it suffered a major blow, its reservation sales grew 37 percent since the second quarter of 2020. The leasing operations also increased to 95 percent operational gross floor area since their tenants are deemed essential.
Given this, the company maintains optimism in the real estate sector, believing that it will soon recover from its losses. The forecasted growth of overseas remittances is one of the things the property developer banks on.
Vista Land’s ongoing projects: Kizuna Heights, Sky Arts Manila, Vista Pointe, Symphony Towers, Pine Crest (vertical residential)
Robinsons Land Corporation
2020 Net Income: P5.26 billion
The Gokongwei-owned property firm bagged P5.26 billion in the year of the pandemic. The company’s development portfolio exhibited strength amid the health crisis, as it grew by 30 percent to P12.26 billion. This made up for the slump in the investment portfolio, which posted a 38 percent decrease from 2019.
Marking signs of recovery, the net income in the fourth quarter was up by 20 percent compared to the previous quarter, totaling P863 million.
Robinsons Land’s ongoing projects: Sierra Valley Gardens and The Velaris Residences (vertical residential), Forbes Estates (horizontal residential)
DMCI Homes
2020 Net Income: P1.9 billion
The property arm of the infrastructure conglomerate DMCI Holdings acquired P1.9 billion in 2020. The slower construction activity and unit turnovers, as well as the higher construction costs, during the pandemic caused a huge blow to the property giant’s income. Recovering from this decline, the company saw a higher bottomline of P1.6 billion in the first quarter of 2021.
DMCI Homes’ ongoing projects: Allegra Garden Place, Brixton Place, and The Camden Place (vertical residential)
Century Properties
2020 Net Income: 1.15 billion
Experiencing a 22 percent slump from 2019, the Antonio-led property firm posted a P1.15 billion net income in 2020. The decline, however, was at the levels the property firm predicted and geared up for. Despite the downturn in income, the affordable housing and office leasing segments commanded strength in 2020, as they represented 93 percent of the net income, up from 43 percent last year.
Century Properties’ ongoing projects: The Resort Residences at Azure North (vertical residential) and Batulao Artscapes (horizontal residential),
Eton Properties
2020 Net Income: P802 million
The real estate brand of the Lucio Tan Group amassed P802 million last year amid the pandemic. In 2019, they had a P900 million net income. Despite the decline, the company was able to deliver projects, such as the Blakes Tower, an office and residential building in Makati.
Eton Properties’ ongoing projects: Eton City Square 1 (retail and commercial center) and Parklinks (mixed-use development)
Anchor Land
2020 Net Income: P349.65 million
Earning P349.65 million in 2020, this upscale property developer also saw a drop in sales from the recorded P824.57 million in 2019, according to Business World. The slowdown in construction projects delayed completion and restricted the selling activities of the company.
However, the rental income during the pandemic year rose by 31 percent to P1.02 billion, particularly earned in The Centrium. The property firm believes that quick recovery is possible, as the economic downturn is only temporary.
Anchor Land’s ongoing projects: One Legacy Grandsuites and Cornell Parksuites (vertical residential), One Financial Center, (office building), Recto Logistics and Rosan Logistics (logistics facilities)
Despite the slowdown in real estate activities, property firms managed to keep their operations afloat, embracing innovations and witnessing the resilience of particular business segments. Overall, the strong performance of the property industry amid the most challenging crises is a testament to its reliable stability.
Article and Photo originally posted by Lamudi last July 2, 2021.
About Post Author
More Stories
Banks’ total assets up at P26.2 trillion end-June
Lamudi sees heightened developer confidence with rise in ad spending
Phase 1 of PHINMA’s Bacolod township to finish by next year