Listed property developer Megaworld Corp. is rolling out a P2-billion share buy-back program to support its stock and enhance shareholder value as current market prices undervalue its shares.

“The Board believes that current market prices do not reflect the true value of the Company’s shares and seeks to enhance shareholder value through a share buy-back program,” Megaworld said in a disclosure on Thursday.

Two-year program

The 24-month program, which starts on 25 September, will involve purchasing shares through the Philippine Stock Exchange, funding it from internally generated resources, and recording the transaction as treasury stock.

The exact number of shares to be repurchased and the company’s capital structure after the program “cannot be determined yet as these will depend on the total buy-back price of the shares.”

Megaworld added that the terms “shall be subject to review of management from time to time and shall be implemented in a manner that is beneficial to the Company.”

Strong financial performance

The buy-back follows the company’s strong first-half financial performance. Megaworld reported a record net income of P12.09 billion from January to June, up 23 percent from the same period last year, with second-quarter earnings increasing 31 percent to P6.26 billion.

First-half revenues

First-half revenues grew 10 percent to P43.09 billion, driven by office leasing, mall leasing, hotels, and real estate sales.

The company recently launched its 36th township, the 116-hectare, P5-billion Nascala Coast in Nasugbu, Batangas, and plans another provincial development this year.

Megaworld aims to expand its total leasing portfolio to three million square meters by 2030. As of the end of June, the company’s total assets stood at P500 billion.