Strong real estate activities lift Megawide's income

Infrastructure giant Megawide Construction Corp. saw a 14-percent rise in its net income to P210 million in the first quarter, driven by strong real estate operations, according to a report by Philippine Star.

Revenues, however, declined by 19 percent to P4.2 billion during period from last year’s P5.2 billion.

Megawide chairman and CEO Edgar Saavedra said the company’s first quarter performance reflects its commitment to build on the early gains in 2024.

“For instance, we have already recorded the initial net income contribution from our property development arm after our acquisition in 2023, which gave us a boost in the first quarter,” Saavedra said.

“We intend to sustain this momentum across all our business platforms in the coming periods as we progress with our existing contracts and projects,” he said.

Megawide’s real estate operations generated P397 million in revenue during the quarter, its highest level to date.

The strong performance was attributed to projects such as My Enso Lofts, The Hive, Northscapes, Modan Lofts and One Lancaster Park.

With a healthy sales stock of more than P12 billion as of March, Megawide said the segment is expected to sustain healthy revenue generation moving forward.

Construction operations, meanwhile, contributed P3.67 billion during the period.

“The performance was traced to the winding down phase, based on the S-Curve, for a number of projects, which generate lower revenues but better margins,” Megawide said.

Megawide’s order book ended the quarter at P41.5 billion, with new contracts amounting to P2 billion, coming from Towers 2 and 3 of PH1 World Developers Inc.’s Modan Lofts Ortigas Hills.

Landport operations registered revenue of P136 million, 27 percent higher than the previous year.

Megawide said the improvement came from both office towers and commercial spaces, which benefitted from the influx of passenger traffic in the terminal.

Average daily foot traffic for the three-month period was recorded at 156,570 with average spending registered at P33.2 per passenger.

Megawide said it is looking forward to more ventures into scalable and responsive business platforms.

Anchored on its engineering and construction DNA and pre-cast and construction solutions advantage, Megawide said it is also looking forward to more ventures into scalable and responsive business platforms.

Last April 14, Megawide listed P5.3 billion worth of Series 6 preferred shares in the Philippine Stock Exchange to refinance maturing obligations and partially fund the company’s growth pipeline.