Megaworld income surges 35% in Q1

Upscale property developer Megaworld Properties & Holdings Inc. said its net income for the first quarter this year grew by 35.5 percent due to the sustained demand for its residential and commercial projects.

Based on financial statements filed at the Securities and Exchange Commission, Mega-world reported a first quarter profit of P217.39 million as against P160.37 million in the same period last year.

Total revenues increased by 41.39 percent to P441.1 million compared with only P311.98 million last year as a result of brisk selling of projects from Eastwood Excelsior Towers 1 and 2; Olympic Heights Towers 1,2 and 3; One Orchard Road, and Eastwood Cyber One, all located at Eastwood City; Marina Residential Suites and Condominium Hotels; Forbeswood Heights in Fort Bonifacio and Greenbelt Parkplace in Makati City.

Leasing operations and other sources of income remained a major revenue contributor, accounting for P203.66 million or 46 percent of consolidated revenues. Compared to the same period last year, it grew by 149 percent year-on-year from P81.94 million, owing to high occupancy rates of the commercial and office space units in The Cyberpark.

A number of firms engaged in information technology have signified interest in locating in The Cyberpark, which also houses Citibank Square, IBM Plaza, Cyber One, Icite and Techno Plaza.

The company’s first venture in dining and entertainment hub, Eastwood City Walk continues to provide additional income and revenues due to high occupancy rate of almost 100 percent which prompted the company to expand its leasing portfolio.

Operating expenses, meanwhile, increased by 41.87 percent to P132.28 million compared with P93.24 million the same period a year ago. This was due to depreciation costs brought about by the completion of several properties for lease. Marketing/selling expenses likewise increased to complement the upsurge in revenues.

Meanwhile, Empire East Land Holdings Inc., the medium-to-low-cost housing subsidiary of Megaworld, reported a 27.7 percent drop in its first quarter profits to P25.55 million from P35.13 million the same period a year ago.

The drop was attributed to the decrease in total revenues from P157.36 million to P145.64 million, largely as a result of the competitive environment in the market in terms of price and payment scheme.

Sales came from Laguna BelAir 3, Greenhills Garden Square, California Garden Square, and Xavier Hills.

The company is currently marketing "The Cambridge Village" which is located in the Pasig-Cainta area. This project consists of clusters of residential buildings and caters to a broad middle income market.