Posted on 09:43 PM, May 13, 2010 [ BusinessWorld Online ]
PROFITS OF listed property developer Megaworld Corp. rose by about a tenth to P1.098 billion in the first quarter on the back of stronger revenues from project sales and rentals.
“Consolidated total revenues composed of real estate sales, rental income, hotel income, interest income, dividend income and other revenues, [went up] by 6.15% from P4.38 billion to P4.65 billion resulting from strong property sales and increased leasing income,” the company told the local bourse yesterday.
This resulted in the real estate unit of businessman Andrew L. Tan posting a 7.43% increase in net income to P1.098 billion in the first quarter, from P1.022 billion during the same period last year.
Including an P819.777-million net unrealized gain on available-for-sale financial assets, Megaworld registered a P1.918-billion comprehensive income for the first three months, up from P850.48 million year on year.
Megaworld has six ongoing township projects within Metro Manila and several residential developments in the Makati central business district.
It has allotted up to P10 billion for capital expenditures this year to fund five new residential projects worth P12 billion.
“With its strong financial position, the group will continue investing in and pursuing expansion activities as it focuses on identifying new markets, maintaining established markets and tapping business opportunities,” Megaworld said.
Megaworld, which is also into office buildings, claims to have the largest share of business process outsourcing spaces with 306,000 square meters. It expects another 78,000 square meters to be completed within the year.
“Total resources for the first quarter of 2010 reflected an amount of P87.52 billion compared with P85.25 billion as of Dec. 31, 2009,” the company said.
In March, Megaworld was chosen as the government’s joint venture partner to develop the former Joint United States Military Advisory Group property at Fort Bonifacio in Taguig City for P22 billion over a period of 20 years.
Parent Alliance Global, Inc. through Travellers International Group, Inc., has a joint venture with Genting Hong Kong Ltd., to build Resorts World Manila in Newport City and Resorts World Bayshore City within the 90-hectare Bagong Nayong Pilipino Entertainment City Manila. Both are in Pasay.
Shares in Megaworld, whose profits went up by 7.2% to P4.06 billion last year, closed at P1.32 each yesterday, higher than P1.30 on Wednesday. -- Neil Jerome C. Morales