Strong real estate sales, office rentals and hotel revenues led Megaworld’s growth last year
Megaworld, the country’s largest integrated urban township developer, increased its net income by 36% to 14.4 billion pesos last year, from 10.6 billion pesos recorded in 2020, just as the company has recorded gains in line with the improvement in the business environment. Net profit attributable to the parent company amounted to 13.4 billion pesos, up 36% from 9.9 billion pesos the previous year.
Consolidated revenue increased 17% year-on-year to 50.8 billion pesos from 43.5 billion pesos previously. On a quarterly basis, revenue for the fourth quarter of 2021 reflected a 37% jump to 13.9 billion pesos from 10.1 billion pesos a year earlier, with all major businesses posting double-digit growth.
Real estate sales rose 25% year-on-year to 31.1 billion pesos from 24.9 billion pesos a year earlier as construction activity resumed during the year. Reservation sales, on the other hand, soared to 80.0 billion pesos, up 17% from the 68.1 billion pesos recorded in 2020.
During the year, the company launched 11 new residential and commercial land projects with a total sales value of 28 billion pesos, more than triple the launches of the previous year. These projects are located in various townships, including Maple Grove and Arden Botanical Estate in Cavite; Northwin Global City in Bulacan; Paragua Coasttown in Palawan; Eastland Heights in Rizal; McKinley West in Taguig City; and Alabang West in the town of Las Piñas.
Taking advantage of the opportunities presented by the resumption of economic activity, the company launched two new townships in the second half of 2021, namely the 462-hectare Paragua Coastown in San Vicente, Palawan, which is the company’s first ecotourism township. . ; and the 85-hectare Northwin Global City in Marilao and Bocaue, Bulacan, which is expected to be Bulacan’s first “global city”.
“There was huge demand for titled land, both from our residential and commercial offerings last year. We can see that trend continuing even this year,” said Kevin L. Tan, Chief Strategy Officer of Megaworld.
In 2021, Megaworld Premier Offices reached a record level of rental income at 11.1 billion pesos by closing approximately 236,000 square meters of new and renewal transactions. Office occupancy during the year was 90%, well above the industry average of around 81-84%.
Megaworld Lifestyle shopping centers, on the other hand, recorded 2.3 billion pesos in rental income last year, still 10% less than the previous year, as the country implemented several closures due to the surge in COVID-19 infections. However, in the last quarter of the year when the government moved to lower alert levels, particularly in the National Capital Region (NCR), rental income soared 51% to 753 .0 million pesos, even as the company continued to provide support to its retail business. partners via rental concessions.
Meanwhile, Megaworld Hotels & Resorts recorded a strong recovery in 2021 with hotel revenue up 30% to 1.9 billion pesos year-on-year from 1.5 billion pesos the year before. This was due to the consistent performance of the company’s hotels in town and the opening of the Kingsford Hotel in the company’s Westside City township within Entertainment City during the second quarter of the year.
“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.
During the year, Megaworld also launched its REIT company, MREIT, which debuted on the Philippine Stock Exchange on October 1, 2021. The REIT structure provided the company with a great way to unlock previously invested capital. by injecting some of its office assets into MREIT. Since then, MREIT has expanded its GLA real estate portfolio from an initial 224,000 m². to 280,000 m²
To date, Megaworld has received net proceeds of approximately 23.5 billion pesos from REIT-related transactions, which will be used to support the company’s project pipeline.
Megaworld has 28 planned integrated urban townships, integrated lifestyle communities and lifestyle estates across the country, namely: Eastwood City in Libis, Quezon City, (18.5 hectares); Newport City to Pasay City (25 hectares); McKinley Hill (50 hectares), McKinley West (34.5 hectares), Uptown Bonifacio (15.4 hectares) and Forbes Town (5 hectares), all in Fort Bonifacio, Taguig City; Lucky Chinatown in Binondo, Manila (3 hectares); The Mactan Newtown in Lapu-Lapu City, Cebu (30 hectares); Iloilo Business Park in Mandurriao, Iloilo City (72 hectares); Sta. Barbara Heights in Sta. Barbara, Iloilo (173 ha); Boracay Newcoast on the island of Boracay (150 hectares); Twin Lakes at Alfonso, Batangas near Tagaytay (1,300 hectares); ArcoVia City in Pasig City (12.3 hectares); Southwoods City within the limits of Cavite and Laguna (561 hectares); Davao Park District in Lanang, Davao City (11 hectares); Alabang West in the city of Las Piñas (62 hectares); Eastland Heights in Antipolo, Rizal (640 hectares); Suntrust Ecotown in Tanza, Cavite (350 hectares); Maple Grove at General Trias, Cavite (140 hectares); The Hamptons Caliraya in Lumban-Cavinti, Laguna (300 hectares); Upper East (34 hectares) and Northill Gateway (50 hectares) both in Negros Occidental; Capital Town Pampanga next to the Provincial Capitol of Pampanga in the city of San Fernando (35.6 hectares); Westside City in the Entertainment City at Paranaque City (31 hectares); Empire East Highland City in Antipolo, Rizal (24 hectares); Arden Botanical Estate within the limits of Trece Martires and Tanza, Cavite (251 hectares); Paragua Coastown (462 hectares); and Northwin Global City (85 hectares). (Press release)