Megaworld Corp., the property development arm of tycoon Andrew Tan, has set aside P55 billion in capital expenditures this year, 19 percent higher than last year’s P46 billion.
The company also targets P130 billion in reservation sales for the year, 9 percent higher than last year’s P118.9 billion, and will launch P60 billion worth of projects for the period or 33 percent more than a previous P45 billion.
“Continued improvement of real estate revenues is expected on the back of the increase in construction activities,” the company said, adding that its office space rents are seen stabilizing and rent escalations will continue despite the challenges.
“Expect hotel growth to continue in line with improving outlook for leisure and MICE (meetings, incentives, conferences and exhibitions) activities,” Megaworld said.
The company said it has a pipeline construction of office buildings of 207,200 square meters in gross leasable area, seen completed between this year through 2026.
The buildings are located in Bacolod, Taguig, Iloilo and San Fernando in Pampanga.
The company has 159,500 square meters in gross leasable area GLA in shopping mall pipeline construction that it hopes to complete between now through 2026. These are located in Antipolo, Davao, Taguig, Boracay, Pampanga, Cavite, Cainta and Bacolod.
The business will also complete 3,159 in room keys from this year through 2028. These include the Chancellor Hotel Boracay, Grand Westside Hotel in Paranaque, Belmont Hotel Iloilo, Kingsford Hotel Bacolod and Savoy Hotel Palawan.
Megaworld income last year totaled P15.4 billion, up 7 percent from P14.4 billion, boosted by double-digit revenue growth across all of its business segments.
Revenues grew at a faster rate of 17 percent to P59.52 billion from the previous year’s P50.75 billion.
In the fourth quarter alone, profits fell 1 percent to P5.7 billion from the previous year’s P5.8 billion, while revenues rose 23 percent to P17.1 billion from the previous P13.9 billion.
Residential sales for the year climbed 18 percent to P36.84 billion from the previous P31.12 billion, with 34 percent growth during the last quarter of the year.
Residential pre-sales surged 49 percent to almost P119 billion in 2022, exceeding the company’s target of P110 billion.
