PROPERTY and construction firm DM Wenceslao and Associates Inc. saw its net income in the first half of the year grow by 42.5 percent on the back of strong growth in its leasing business.
In a filing to the Philippine Stock Exchange on Tuesday, DM Wenceslao said net income rose to P975 million from P683.9 million in the same period last year.
Net profit attributable to shareholders of the parent company also grew 42 percent to P969.8 million.
Revenues dropped 20 percent from a year ago to P1.2 billion, 80 percent of which was contributed by recurring income due to the completion of a new office building.
Land rentals increased 5 percent to P482.2 million while building rentals expanded 70 percent to P351.9 million. Other leasing revenues also increased 70 percent to P127.9 million.
Sales from the residential segment rose 6 percent to P119.5 million while construction revenues rose 19 percent to P114.5 million.
“Strong execution from our marketing and construction teams is accelerating momentum across our businesses.
We have completed our third commercial office building ahead of schedule and within budget. This early delivery added over 30,000 square meters (sqm) of leasable gross floor area which was fully leased out as of the end of 2017,” DM Wenceslao Chief Executive Officer Delfin Angelo Wenceslao said.
In the first half of the year, the company commenced construction of a 68,980-sqm office building called 8912 Asean Ave., due for completion in 2021. It is the company’s largest project in its office portfolio so far.
On the residential side, construction of condominium project Pixel Residences is on track and should be completed in 2019.
“We have a clear set of strategies centered around portfolio expansion through a combination of land and commercial leasDM Wenceslao is poised to launch P12 billion worth of projects over the next five years — six for office space and three for residential.ing and residential sales growth,” Wenceslao said.
As at June 30, 2018, its total leasable gross floor area had increased 52 percent year-on-year to 89,914 sqm, leased land area was up 3 percent at 155,418 sqm and the occupancy rate stood at 94 percent.
DM Wenceslao is poised to launch P12 billion worth of projects over the next five years — six for office space and three for residential.
DM Wenceslao shares were down 8 centavos at P9.77 apiece.