MEGAWORLD REPORTS P11.6-B NET INCOME IN 2016
Surging rental income breaks P10-B mark for an all-time high
Megaworld, the country’s largest developer of integrated urban townships and the biggest lessor of office spaces, grew its net income by 12% in 2016 to P11.63-billion (net of P82-million non-recurring gain) from P10.39-billion (net of P181-million non-recurring gain) the previous year. The company’s sustained double-digit growth is attributed to stronger rental revenues that soared by 15% in 2016 to an all-time high of P10.01-billion from P8.73-billion during the previous year, as well as to the company’s efficient cost management from operations.
“Megaworld achieved another milestone last year as we breached the P10-B mark for our rental revenues. We have achieved our targets across the board as we have steadily grown and expanded our core businesses. Township development remains to be a key strength of our company and we have focused on strengthening the various components of our townships on top of our residential businesses, such as offices, malls and commercial developments as well as hotels,“ says Francis Canuto, treasurer, Megaworld.
Megaworld’s consolidated revenues, excluding non-recurring gains, grew 4% year-on-year in 2016 to P46.74-billion compared to P44.81-billion in 2015.
On the other hand, the company’s successful cost management programs only led to a modest 2% growth in costs and expenses at P35.1-billion in 2016 from P34.4-billion in 2015. Prudent spending for operation expenses led to only 5% growth, a remarkable improvement from 7% year-on-year growth in 2015.
“Last year, we became successful in introducing another concept in real estate development which we call the ‘integrated lifestyle community.’ This year, we hope to add more developments under this category as we activate some of our remaining raw lands across the country that have good potential for leisure and tourism,” adds Canuto.
Late last year, Megaworld introduced Eastland Heights, its first ‘integrated lifestyle community’ expanding 640 hectares on the mountains of Antipolo, Rizal. Earlier in 2016, the company also launched its 21st township called Maple Grove in General Trias, Cavite, spanning 140 hectares.
During the last 27 years, the company was successful in masterplanning integrated urban townships across the country that include: Eastwood City in Libis, Quezon City, (18.5 hectares); Newport City in Pasay City (25 hectares); McKinley Hill (50 hectares), McKinley West (34.5 hectares), Uptown Bonifacio (15.4 hectares) and Forbes Town (5 hectares), all in Fort Bonifacio, Taguig City; The Mactan Newtown in Lapu-Lapu City, Cebu (30 hectares); Iloilo Business Park in Mandurriao, Iloilo City (72 hectares); Sta. Barbara Heights in Sta. Barbara, Iloilo (173 hectares); Boracay Newcoast in Boracay Island (150 hectares); Twin Lakes in Alfonso, Batangas near Tagaytay (1,300 hectares); ArcoVia City in Pasig City (12.3 hectares); Southwoods City in the boundaries of Cavite and Laguna (561 hectares); Davao Park District in Lanang, Davao City (11 hectares); Alabang West in Las Piñas City (62 hectares); Suntrust Ecotown in Tanza, Cavite (350 hectares) and The Upper East (34 hectares) and Northill Gateway (50 hectares) both in Negros Occidental; Capital Town Pampanga beside the Pampanga Provincial Capitol in the City of San Fernando (35.6-hectares); and Westside City in the Entertainment City in Paranaque City (31 hectares.)