Megaworld nets P9.9 billion in 2020

MANILA, Philippines — Property developer Megaworld recorded a net income of P9.9 billion last year, down 44 percent as consolidated revenues dropped 35 percent to P43.5 billion.

The last quarter of 2020, however, saw signs of recovery in most of the company’s core businesses, particularly in Megaworld Lifestyle Malls, Megaworld Hotels, and even in the residential business as the country eased quarantine measures in time for the holiday season.

Real estate sales grew by 22 percent in the fourth quarter with reservation sales up 85 percent quarter on quarter, while Megaworld Lifestyle Malls and Megaworld Hotels also grew 24 percent and 25 percent quarter on quarter, respectively.

Furthermore, Megaworld was able to close deals for new office leases last year despite the lockdowns.

Around 135,000 square meters of fresh office space inventory were leased out in the company’s townships in Iloilo, Quezon City and Fort Bonifacio.

Megaworld chief strategy officer Kevin Tan said these were mostly BPOs, e-commerce, logistics, and finance companies.

He likewise noted the strong interest in Megaworld’s office developments in Iloilo Business Park.

“Approximately 20 percent of new leases have been booked there and we even cemented our dominance in terms of market share in the Iloilo office market,” Tan said.

In addition to new leases, the company also bagged lease renewals for around 145,000 sqm office spaces from different tenants last year.

Megaworld Premier Offices ended 2020 with P10.4 billion in rental revenues, just around the same level in the previous year.

“At this point, we can say that our office business is the most stable income generator in our company’s revenue stream with or without this health crisis, and we continue to focus on the expansion of this business in the years to come and further strengthen our leadership in the country’s office property sector,” Tan said.

Megaworld’s rental income slid 23 percent to P12.9 billion last year while real estate sales declined by 42 percent to P24.9 billion year-on-year.

The company has 26 master planned integrated urban townships, integrated lifestyle communities and lifestyle estates across the country.