D.M. Wenceslao and Associates, Inc. On Wednesday reported a net income of P918 million in the first half, driven by strong leasing operations.
This year’s result, however, is a sharp fall from the P7.3 billion the company reported in the same period last year, when net income included a one-time gain of P5.6 billion from the consolidation of a joint venture firm. Excluding one-off items, DM Wenceslao posted P1.7 billion in core net income last year.
Recurring revenue from rentals surged 34 percent year-on-year to P1.6 billion, making up 86 percent of total revenue. Commercial building revenue rose 59 percent to P669 million, supported by an increased gross leasable area of 235,846 square meters compared to 162,351 sqms in the same period last year. This growth was driven by robust leasing activity.
Land rentals grew 14 percent to P680 million due to lease expansions. Residential revenue total P235 million, affected by revenue recognition timing.
Gross profit increased to P1.4 billion, with land leasing contributing ₱662 million. The gross profit margin rose to 76 percent, with high-margin leasing activities accounting for 90 percent of gross profit.
Chief executive officer Delfin Angelo ‘Buds’ Wenceslao said the company’s business model and value of its long-term partnerships with top companies are stable, and offer high margins and growth opportunities. He also emphasized DMW’s commitment to creating dynamic, integrated environments in Aseana City, enhancing property appeal and community engagement.
“Our performance in the first half of 2024 highlights the stability and robust foundation of our business model,” said Wenceslao.
“Our best-in-class anchor locators— including top logistics multinationals, one of the country’s largest malls,major grocery warehouse chains, and the Philippines’ leading healthcare institution—ensures stable, long-term income streams. These partnerships, which extend up to 50 years, offer not only high margins but also significant growth opportunities through percentage-based sales collections,” he added.
