Megaworld property has breached the 10 billion peso (US$216 million) mark in 2015 profits, with commercial leasing as the fastest growing segment.
The Philippine property giant’s core profit reached P10.4 billion, up 10.6 per cent from last year’s P9.4 billion.
The company’s leasing business was the fastest growing business segment in 2015, as rental income grew a remarkable 23.5 per cent. Leasing income from malls, commercial centers, and offices reached P8.7 billion in 2015, up from P7.1 billion the previous year.
The company is looking at ramping up its mall and office rentals for further growth.
“We have already mastered the art of township development. What we want to focus on now is how to further grow our rental portfolio, which is integral to being a township developer. Malls and offices are key components of an urban township,“ says Francis Canuto, CFO of Megaworld.
“Our rental business had been growing exponentially the last five years. We are confident that we will reach the P11‐billion target by the end of this year as we see continuous growth in consumer spending as well as further expansion of BPO companies, particularly in key growth areas in Visayas and Mindanao where Megaworld is already present,” adds Canuto.
The company launched five townships in 2015, bringing its total township developments across the country to 20. Some of its townships include Eastwood City in Quezon City, Newport City in Pasay City, Fort Bonifacio’s McKinley Hill, McKinley West and Forbes Town Center.
Megaworld’s consolidated revenues grew 9.4 per cent year‐on‐year in 2015 to P44.8 billion. Each of Megaworld’s core business ‐ residential, rental and hotel operations – achieved double‐digit growth in 2015.