Megaworld Corp., the property development arm of businessman Andrew Tan, said its income declined 45 percent last year to P10.6 billion from the previous year’s P19.29 billion.
The company’s businesses were affected by the series of lockdowns that closed down its shops and halted construction activities.
Consolidated revenues fell by 35 percent to P43.5 billion from last year’s P61.96 billion. Megaworld’s rental income slid 23 percent to P12.9 billion last year from P16.8 billion in the previous year, while real estate sales declined by 42 percent to P24.9 billion from the previous P42.6 billion.
The company said it saw some recovery during the fourth quarter in its shopping malls, hotels and even in its residential businesses as the country eased quarantine measures in time for the holiday season.
“The adjustments made by our various business segments amidst the challenging environment allowed us to benefit from the gradual reopening of the economy. Nonetheless, the main priority of Megaworld during this time was to preserve the jobs of our workers and continue to provide the much needed services to the communities that we serve,” Kevin L. Tan, the company’s executive vice president, said.
Megaworld Hotel booked P1.5 billion in revenues last year, down by 40 percent from the previous year’s P2.5 billion.
On the residential business, the company launched P7.8 billion worth of new projects last year, down from about P85 billion in the previous year.
On the office side, the company said around 135,000 square meters of fresh office space inventory were leased out in the company’s townships in Iloilo, Quezon City and Fort Bonifacio in Taguig. Around 78 percent of these new leases are part of the expansion programs of existing office partners while the rest were taken by new client companies.
“These are mostly companies operating BPOs, e-commerce, logistics, and finance. And we are very happy to see the strong interest in our office developments in Iloilo Business Park. Approximately 20 percent of new leases have been booked there and we even cemented our dominance in terms of market share in the Iloilo office market,” Tan said.
The company also bagged lease renewals of around 145,000 square meters of office spaces from various company tenants last year.
Megaworld Premier Offices ended 2020 with P10.4 billion in rental revenues, slightly down from the previous year’s P10.4 billion.
The company was also able to complete the construction of around 87,000 square meters of fresh office spaces last year, bringing the total leasable office inventory to 1.4 million square meters. This excludes the office spaces that are for sale in Iloilo Business Park and Maple Grove in Cavite.
“At this point, we can say that our office business is the most stable income generator in our company’s revenue stream with or without this health crisis, and we continue to focus on the expansion of this business in the years to come and further strengthen our leadership in the country’s office property sector,” Tan said.
Read full article on BusinessMirror