MEGAWORLD Corp. reported a 36% rise in net income attributable to equity holders to P13.4 billion due to strong real estate sales, office rentals, and hotel revenues, the real estate developer said in a disclosure on Wednesday.
“There has been a huge demand for titled lots, from both our residential and commercial offerings last year. We can see this trend to continue even this year,” Megaworld Chief Strategy Officer Kevin L. Tan said.
After-tax net income grew by 36% to P14.4 billion in 2021 from P10.6 billion in 2020.
“In 2021, we shifted gears from pandemic management to restarting our growth trajectory, and our initiatives on this front have begun to bear fruit. As our numbers have shown, all our business segments registered significant improvements, even as we continue to provide assistance to ensure the recovery of our various stakeholders,” Mr. Tan added.
Revenues grew by 17% to P50.8 billion from P43.5 billion year on year. In the fourth quarter, revenues jumped by 37% to P13.9 billion from P10.1 billion.
Of Megaworld’s core businesses, real estate sales increased by 25% to P31.1 billion in 2021 from P24.9 billion, as construction activities picked up during the year.
In 2021, the township developer launched 11 residential and commercial lot projects with a total sales value of P28 billion. This includes Maple Grove and Arden Botanical Estate in Cavite; Northwin Global City in Bulacan; Paragua Coastown in Palawan; Eastland Heights in Rizal; McKinley West in Taguig City; and Alabang West in Las Piñas City.
Megaworld Premier Offices recorded rental income at P11.1 billion as it closed around 236,000 square meters (sq.m.) of new and renewal transactions, with an office occupancy rate at 90%.
Meanwhile, Megaworld Lifestyle Malls posted P2.3 billion in rental income last year, or 10% lower than the previous year due to pandemic lockdown restrictions.
Meanwhile, hotel operations reported revenues of P1.9 billion in 2021, up by 30% from P1.5 billion previously.
“This was due to the consistent performance of the company’s in-city hotels and the opening of Kingsford Hotel in the company’s Westside City township within the Entertainment City during the second quarter of the year,” the company said.
In 2021, Megaworld also launched its real estate investment trust (REIT) company, MREIT, Inc., which made its market debut on Oct. 1.
“The REIT structure provided a very good avenue for the company to unlock previously invested capital by infusing some of its office assets into MREIT. Since then, MREIT has grown its property portfolio GLA from the initial 224,000 sq.m. to 280,000 sq.m.,” Megaworld said.
At the stock exchange on Wednesday, its shares rose by 2.65% or P0.08 to close at P3.10 apiece. — Luisa Maria Jacinta C. Jocson