Megaworld Corporation (MEG) has reported a strong performance in FY22, with core net income growing by 11.7% year-on-year to Php15.16 billion. This exceeds the forecast of Php14.7 billion and was driven by an 18.4% growth in real estate revenues, a 51.4% growth in mall revenues, and a 10.6% improvement in offices.
While MEG's reported FY22 net income remained flat at Php13.46 billion, it included a lumpy forex loss, while FY21's income had a one-time tax adjustment gain. Excluding these factors, core net income grew by 11.7% year-on-year.
The real estate segment sustained its upward trajectory in 4Q22, with sales increasing by 16% quarter-on-quarter and 33.6% year-on-year due to higher construction completion. Reservations sales also remained high in 4Q22, growing by 29.8% year-on-year to Php33.4 billion, while total take-up sales in FY22 reached Php119 billion, 49% higher than FY21 and higher than the company's target of Php110 billion.
MEG's mall and hotel rental revenues saw a significant jump in 4Q22, with mall revenues up by 52.9% year-on-year and hotel revenues up by 27.8% year-on-year. For FY22, mall revenues reached Php3.4 billion, up by 51.4%, while hotel revenues grew by 35% year-on-year to Php2.6 billion. Tenant sales surpassed pre-pandemic levels, and mall rents moved closer to pre-pandemic rates.
Lastly, MEG's office segment remained resilient, with 3Q22 office revenues up by 6% year-on-year and 1.6% quarter-on-quarter to Php3.12 billion, and full-year office revenues up by 10.6% year-on-year to Php12.2 billion. The high occupancy rate of 92%, above the industry average of around 85%, contributed to this growth.
Overall, MEG's strong performance in FY22 reflects its robust real estate segment, growing mall and hotel rental revenues, and resilient office segment. The company's high occupancy rate and sustained sales growth indicate its ability to adapt and thrive in challenging economic conditions.
Source: www.colfinancial.com
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