Megaworld’s attributable income up 57% on strong real estate sales

MEGAWORLD Corp. recorded a 57% increase in its attributable net income to end the third quarter with P3.2 billion from last year’s P2 billion on the back of a 102% climb in real estate sales.

In a statement on Wednesday, the company said it posted a net income growth of 46% to P3.3 billion from P2.2 billion in the same period last year, while its consolidated revenues went up by 50% to P14.5 billion from P9.6 billion.

For the first nine months of 2021, Megaworld’s attributable net income totaled P8.6 billion, 10% higher than the P8.1 billion booked in the same period last year. Consolidated revenues also rose 10% to P36.9 billion from P33.4 billion.

Megaworld’s sales from its real estate business “led the recovery,” surging by 102% to P9.6 billion in the third quarter from P4.7 billion. Reservation sales improved by 35% year on year to P17.1 billion.

The company said its improved real estate sales reflected its expanded construction activities in the third quarter. Megaworld also launched 462-hectare Paragua Coastown in Palawan, its first eco-tourism township.

Real estate sales in the first nine months also climbed 21% to P23.1 billion from last year’s P19.1 billion.

Meanwhile, Megaworld Hotels & Resorts’ profits surged 121% to P552 million in the third quarter. Megaworld said the “consistent performance” of its in-city hotels was supported by the opening of its Kingsford Hotel in the company’s Westside City township.

Revenues from its hotels and resorts business went up by 9% in the first nine months to P1.3 billion from last year’s P1.2 billion.

Megaworld Premier Offices recorded an “almost flat” rental income for the quarter at P2.9 billion, while its revenues for the nine-month period amounted to P8.1 billion.

On the other hand, Megaworld Lifestyle Malls logged a 16% year-on-year growth in rental income to P469 million in the third quarter despite providing concessions to its retail partners.

“The recovery momentum has started to pick up and we hope that the lowering of the alert levels especially in Metro Manila will continue until the yearend. As more people safely go out and enjoy the normal life, the better for business and our economy as a whole,” said Kevin Andrew L. Tan, chief strategy officer of Megaworld.

Megaworld has developed 28 integrated townships, integrated lifestyle communities, and lifestyle estates across the country.

On Wednesday, Megaworld shares declined 2.66% or nine centavos to close at P3.29 each.

If you like this article, share it to social media by clicking any of the icons below.

Or in case you haven’t subscribed yet to our newsletter, please click SUBSCRIBE so you won’t miss the daily real estate news updates delivered right to your Inbox.

Article was originally published in Business World and written by Keren Concepcion G. Valmonte.