Billionaire Andrew Tan’s township developer Megaworld Corporation reported a 39 percent growth in net income to P13.5 billion in the first nine months of 2023 as it posted double-digit growth across all core business segments.
In a disclosure to the Philippine Stock Exchange (PSE), the firm said it pulled away even farther from its pre-pandemic levels with attributable net income rising by 43 percent to P12 billion from last year’s P8.4 billion.
Consolidated revenues during the first nine months of the year increased by 14 percent to P48.6 billion, driven by robust real estate bookings, leasing, and hotel operations.
“We are optimistic that we will reach our record revenues by the end of the year across our businesses as we continue to capture opportunities within and beyond Metro Manila,” said Kevin L. Tan, chief executive officer of Alliance Global Group, the parent company of Megaworld.
Real estate sales for the period increased by 11 percent year-on-year to P29 billion due to higher project completion rates.
Megaworld said it is poised to exceed its year-end reservation sales target of P130 billion, with reservation sales in the first nine months of 2023 growing by 28 percent to P109.5 billion. This figure already represents 84 percent of the year-end goal.
So far, the company launched P69.3 billion worth of projects this year, with three big projects being rolled out in the third quarter alone.
These include Uptown Modern in Uptown Bonifacio, Taguig City with P29 billion worth of inventory; Laurent Park in Manhattan Garden City, Quezon City with P6.5 billion worth of inventory; and Kensington Sky Garden in Upper East, Bacolod City with P2.5 billion worth of inventory.
“We still have projects to be launched before the year ends,” added Tan.
Leasing revenues from Megaworld Lifestyle Malls and Megaworld Premier Offices grew by 17 percent to P13.3 billion during the first three quarters of the year.
Megaworld Lifestyle Malls grew its revenues by 70 percent to P3.9 billion during the period driven by higher rental collections, while Megaworld Premier Offices grew three percent to P9.4 billion.
On the other hand, Megaworld Hotels & Resorts has surpassed its full-year 2019 revenues during the first nine months of the year, reaching P2.6 billion or an increase of 51 percent from the same period last year.
This was largely driven by the promising growth of MICE activities and local tourism. During the period, Megaworld Hotels & Resorts also saw improved average occupancy and higher room rates compared to last year.
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The article was originally published in Manila Bulletin and written by James A. Loyola.
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