Leasing, sales lift Megaworld H1 income

Property developer Megaworld Corp. posted a record P12.09 billion net income in the first half of the year, up 23 percent from last year, driven by strong residential, leasing, and hospitality revenues. 

Second-quarter earnings rose 31 percent to P6.26 billion.

“Our strong first half and second quarter results reaffirm the strength and adaptability of our township strategy. 

We are always focused on ensuring that our core segments will continue to deliver exceptional performance even in challenging environments,” Megaworld President and CEO Lourdes Gutierrez-Alfonso said in a stock exchange report on Tuesday. 

Revenues grew 10 percent to P43.09 billion in the first half, with leasing as a key driver. Office leasing from Megaworld Premier Offices climbed 17 percent to P7.40 billion, supported by new assets, leases, and rent hikes. Nearly 100,000 square meters of new leases were signed, led by top-tier BPOs and multinational firms.

Megaworld Lifestyle Malls’ leasing revenues rose 10 percent to P3.33 billion, boosted by new premium tenants such as Japan’s Nitori, Korea’s 8Seconds, and China’s KKV.

Hotel revenues jumped 19 percent to P2.81 billion on higher room rates and inventory, with Megaworld partnering with global hotel chain Accor to expand its hospitality portfolio.

Real estate sales grew 9 percent to P27.12 billion, lifted by demand in Metro Manila and provincial growth centers.

The company launched its 36th township, the 116-hectare, P5-billion Nascala Coast in Nasugbu, Batangas, through subsidiary Global-Estate Resorts, Inc. 

Megaworld plans to launch another provincial development this year and aims to expand its total leasing portfolio to three million square meters by 2030.

The company’s assets stood at P500 billion as of the end of June.