D.M. Wenceslao and Associates Inc. (DMW), a property developer and a construction firm, on Monday said its attributable income fell 10 percent to P2.13 billion in 2020, from the previous year’s P2.37 billion, as revenues plummeted due to the absence of land sales.
In its disclosure, the company said its revenues declined 22 percent to P2.73 billion from P3.51 billion in 2019, when it booked land sales of P935.85 million and more construction contracts.
“While 2020 proved to be a uniquely challenging year that caused unparalleled economic disruption globally, the risks that the pandemic posed in our business operations have been minimal,” Delfin Angelo Wenceslao, the company’s CEO, said.
“Despite the uncertainty brought upon by this pandemic, our leasing business proved to be a solid source of recurring income as our lease portfolio is spread across various industries with diverse area requirements and commercial considerations. Our residential segment continued to deliver favorable results for the year. Our performance in 2020 is reflective of not only the resiliency and scalability of our diversified business streams but also the execution capabilities of the [company’s] team.”
Sales of condominium units rose 37 percent to P749.3 million, from P547.65 million reported in the same period the previous year. As of December, the company has successfully turned over 91 percent of its inventory and recognized revenues amounting to P1.25 billion for its first residential project, Pixel Residences.
Recurring income consisting of rentals from land, building and other revenues such as common use service area fees continued to provide a source of revenue for the company, accounting for 72 percent or P1.96 billion of the total revenues for 2020, a little higher than the previous year’s P1.95 billion.
The company’s building leasing portfolio maintained an occupancy rate of 93 percent.
Last year, the company deployed P5.04 billion or 66 percent of its net proceeds from its initial public offering for the development of its pipeline projects. By this year, DMW said it will complete two projects in its pipeline.
These are 8912 Asean Ave., the company’s largest office project to date, to open in the second quarter, and and Parqal, an integrated mixed-use development slated for completion due for completion in the fourth quarter.
Upon its completion, these projects will increase its available gross leasable area by 140,000 square meters and further strengthen its recurring income streams.
The company is the master developer and primary owner of Aseana City, a development project with a total land area of 107.5 hectares located along the coastal waters of Manila Bay.
Since 1965, DMW has reclaimed more than 2.4 million square meters of land, leased or developed 250,000 square meters of land and buildings, and completed over 140 construction and infrastructure projects including large, complex government developments throughout the Philippines.