By Ashley Erika O. Jose, Reporter
MEGAWORLD CORP. posted a modest rise in third-quarter earnings as its office, mall and hotel businesses continued to deliver regular gains, offsetting higher costs and softer residential margins.
Attributable net income climbed 1.16% to P5.23 billion within the July-to-September period, while consolidated revenues rose 4.34% to P19.96 billion, the listed property developer said in a stock exchange filing on Tuesday.
“Our year-to-date performance continues to reflect the strength of our recurring income portfolio and the sustained demand across our residential and hotel offerings,” President Lourdes Gutierrez-Alfonso said.
Real estate sales, which make up the majority of Megaworld’s business, inched up 0.84% to P13.13 billion, while rental income increased to P5.51 billion and hotel operations contributed P1.32 billion. Total expenses rose 1.62% to P12.54 billion.
For the primary nine months, attributable net income jumped 16% to P15.93 billion, driven by a powerful recurring income base. Revenues for the period climbed 8.91% to P60.61 billion, supported by real estate sales price P40.24 billion, rental income price P16.24 billion and hotel revenue price P4.13 billion.
The corporate said growth in its office leasing segment was buoyed by sustained rental escalations and latest take-ups from business process outsourcing and multinational firms. It has closed almost 140,000 square meters in latest leases and 120,000 square meters in renewals this 12 months, underscoring continued demand for spaces inside its integrated townships.
Megaworld Lifestyle Malls booked P5.1 billion in leasing revenue, lifted by rising foot traffic and consumer spending across its major developments.
“This performance was supported by sustained momentum in retail activities and continued tenant expansion, particularly in food, fashion and residential categories,” the corporate said.
Toby Allan Arce, Globalinks Securities head of sales trading, in a Viber message said Megaworld’s fourth-quarter growth would hinge on leasing strength, holiday-driven mall and hotel activity and project completions that drive residential revenue.
Elevated rates of interest and inflationary pressures may temper housing demand, he said in a Viber message. “Even so, recurring income growth, particularly from offices and retail, should remain the first growth driver into 2025, helping the corporate maintain stable profitability and money generation,” he added.
Megaworld operates 36 township developments nationwide covering about 7,000 hectares. It plans to launch one other township outside Metro Manila by year-end and goals to expand its office gross leasable area (GLA) to 2 million square meters and retail GLA by one million square meters by 2030.
Megaworld stocks rose 0.5% to P2 each.