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Megaworld cites higher residential sales in 2012

Posted on January 28, 2013 09:54:28 PM ] BusinessWorld Online ]
THE MEGAWORLD group, consisting of three listed residential property developers controlled by tycoon Andrew L. Tan, grew sales from these projects last year by roughly 71.16% from 2011 levels, driven mostly by its flagship, Megaworld Corp.
“The Andrew L. Tan-led Megaworld group (consisting of Megaworld, Empire East Land Holdings, Inc., and Suntrust Home Developers, Inc.) has sold more than P63.5 billion in residential projects for the full year of 2012, translating into a total salable area of more than 550,000 square meters (sq. m.) -- a 71% growth from its performance in 2011,” Megaworld Corp. said in a disclosure yesterday.
John T. Hao, Megaworld investor relations officer, said by phone yesterday that the group launched “at least 20 projects” last year.
In comparison, the Megaworld group said in February last year that it sold 10,451 residential units worth P37.1 billion with 400,000 sq. m. in total salable area in 2011.
At the same time, the group said it plans to spend a record P35 billion this year amid its upbeat outlook on the property sector.
“The Megaworld group expects a record capex spending of P35 billion in 2013, a sign of its commitment to the real estate industry and its bullish outlook on the market,” the disclosure read.
“The group is looking to launch more than 10 new projects in the first half of the year.”
Mr. Hao was unable to cite how much the group earmarked for is budget last year, even as he noted that this year’s funding will be “mostly internally generated,” with bulk going to Megaworld projects.
Megaworld, incorporated in 1989 as Megaworld Properties and Holdings, Inc., is currently engaged in the development of large-scale, mixed-use master planned townships. Megaworld saw its net income last year drop by 14.93% to P5.7 billion as of September last year from P6.7 billion in the same nine months in 2011, mainly due to higher expenses. In the same comparative periods, revenues rose by 3.88% to P23.85 billion from P22.96 billion, while costs and expenses climbed by 11.75% to P18.16 billion from P16.25 billion.
Empire East, incorporated in 1994 and formerly known as Megaworld’s Community Housing Division, is currently engaged in the development of mid- to high-rise residential condominiums in Metro Manila and single-detached homes in suburban areas. It claims to be a pioneer of residential developments near Metro Manila’s mass transit lines, according to the company’s 2011 annual report.
Empire East boosted its net income to P89.3 million in the nine months to September last year, 7.5% more than P83.07 million in the same period in 2011. Revenues expanded by 21.83% to P1.73 billion from P1.42 billion, while costs and expenses increased by 22.39% to P1.64 billion from P1.34 billion.
Suntrust, which caters to the low- to middle-income real estate market, saw its net income drop by 24.90% to P5.55 million as of September from P7.39 million the previous year due to a plunge in third-quarter earnings.
Revenues increased by 19.64% to P142.99 million from P119.52 million, but this gain was eroded by costs and expenses which added 14.55% to P137.43 million from P111.97 million.
Shares of Megaworld gained two centavos or 0.63% to P3.20 apiece yesterday from P3.18 on Friday last week, while those of Empire East were traded unchanged at P1 each and those of Suntrust rose by one centavo or 1.72% to 59 centavos from 58 centavos. -- Franz Jonathan G. de la Fuente   

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