Megaworld reported 36% profit growth to P9.9b last year

Megaworld Corp. said on Wednesday net profit rose 36% in 2021 to 9.9 billion pesos from a year ago, driven by double-digit revenue growth.

Megaworld said in a stock exchange disclosure that revenue rose 17% to 50.8 billion pesos from 43.5 billion pesos in 2020, driven by higher real estate and rental income of offices.

Real estate sales reached 31.1 billion pesos, up 25% from 24.9 billion pesos as construction activities resume.

Reservation sales also jumped 17% to 80 billion pesos as the company launched 11 new residential and commercial land projects with a total sales value of 28 billion pesos.

“There was huge demand for titled land, both from our residential and commercial offerings last year. We can see this trend continuing even this year,” said Kevin Tan, Chief Strategy Officer of Megaworld.

Megaworld launched two new townships in the second half of 2021, including the 462-hectare Paragua Coastown in San Vicente, Palawan, the company’s first ecotourism township and the 85-hectare Northwin Global City in Marilao and Bocaue, Bulacan .

Rental income from the office leasing business reached a record 11.1 billion pesos with the closing of approximately 236,000 square meters of new and renewal transactions.

The office occupancy rate was 90%, a significant improvement from around 81% to 84% in 2020.

Hotels and resorts also saw a strong recovery, with revenues up 30% to 1.9 billion pesos. This was due to the consistent performance of the Company’s hotels in the city and the opening of the Kingsford Hotel in the Company’s Westside City Township within the City of Entertainment in the second quarter of 2021.

The company’s shopping center business continued to be affected by the pandemic, with revenue down 10% to 2.3 billion pesos.

“In 2021, we moved from managing the pandemic to restarting our growth trajectory, and our initiatives on this front have started to bear fruit. As our numbers have shown, all of our business segments have seen significant improvements, although we continue to provide recovery support to our various stakeholders,” Tan said.