Megaworld earmarks P36B for 2021 capital spending
Township developer Megaworld Corp. has earmarked P36 billion for its capital spending this year, as the company realigns project developments amid the prolonged community quarantine restrictions brought about by the COVID-19 pandemic.
The latest capital expenditure is 29% higher than the actual spending of P27.9 billion in 2020. Its net income for the year fell 45% to P10.6 billion, dragged by the impact of the pandemic on business.
For this year, bulk of the funds or 76% will be allocated for real estate developments, particularly on the construction of new residential properties as the company reported demand, especially in Metro Manila.
Megaworld will spend the remaining 24% on investment properties, but did not elaborate. No amount has been allocated for landbanking initiatives.
"We remain cautious and prudent with our spending as we are still observing how the vaccination program and progress and where this pandemic will be leading us in the next few months," Megaworld Chief Strategy Officer Kevin Tan said in a regulatory filing.
"This is a very targeted capex program aimed at optimizing the use of our available cash during this time," he added.
Megaworld is set to launch four residential projects in 2021, expected to generate P8.3 billion in sales -- Maple Grove in Cavite; Capital Town in Pampanga; Iloilo Business Park in Iloilo City; and The Upper East in Bacolod City.
The company also seeks to turn over 4,000 units from completed residential developments including those in Uptown Bonifacio, McKinley Hill, McKinley West, Eastwood City, Westside City, Capital Town Pampanga, Iloilo Business Park, and Makati City.
"We look forward to eased restrictions by second half of the year. It's still wait and see as of this time, but we are optimistic that the domestic economy will bounce back fast once all of these strict quarantine measures are lifted," said Tan.
Megaworld's businesses include real estate sales of residential developments, leasing of office space, and the management of hotel operations. It has over 720 residential buildings, 70 office towers, 24 lifestyle malls, and 11 hotel brands including condotels.
Its subsidiaries and associates include Richmonde Hotel Group International Limited, Eastwood Cyber One Corp., Suntrust Properties Inc., Empire East Land Holdings Inc., Global-Estate Resorts Inc., and Bonifacio West Development Corp.
Share prices in Megaworld are currently up by 3 centavos or 1.00% to P3.03 apiece as of 10:57 a.m., up from Wednesday's finish of P3.00. — RSJ, GMA News
Megaworld earmarks P36B for 2021 capital spending
Township developer Megaworld Corp. has earmarked P36 billion for its capital spending this year, as the company realigns project developments amid the prolonged community quarantine restrictions brought about by the COVID-19 pandemic.
The latest capital expenditure is 29% higher than the actual spending of P27.9 billion in 2020. Its net income for the year fell 45% to P10.6 billion, dragged by the impact of the pandemic on business.
For this year, bulk of the funds or 76% will be allocated for real estate developments, particularly on the construction of new residential properties as the company reported demand, especially in Metro Manila.
Megaworld will spend the remaining 24% on investment properties, but did not elaborate. No amount has been allocated for landbanking initiatives.
"We remain cautious and prudent with our spending as we are still observing how the vaccination program and progress and where this pandemic will be leading us in the next few months," Megaworld Chief Strategy Officer Kevin Tan said in a regulatory filing.
"This is a very targeted capex program aimed at optimizing the use of our available cash during this time," he added.
Megaworld is set to launch four residential projects in 2021, expected to generate P8.3 billion in sales -- Maple Grove in Cavite; Capital Town in Pampanga; Iloilo Business Park in Iloilo City; and The Upper East in Bacolod City.
The company also seeks to turn over 4,000 units from completed residential developments including those in Uptown Bonifacio, McKinley Hill, McKinley West, Eastwood City, Westside City, Capital Town Pampanga, Iloilo Business Park, and Makati City.
"We look forward to eased restrictions by second half of the year. It's still wait and see as of this time, but we are optimistic that the domestic economy will bounce back fast once all of these strict quarantine measures are lifted," said Tan.
Megaworld's businesses include real estate sales of residential developments, leasing of office space, and the management of hotel operations. It has over 720 residential buildings, 70 office towers, 24 lifestyle malls, and 11 hotel brands including condotels.
Its subsidiaries and associates include Richmonde Hotel Group International Limited, Eastwood Cyber One Corp., Suntrust Properties Inc., Empire East Land Holdings Inc., Global-Estate Resorts Inc., and Bonifacio West Development Corp.
Share prices in Megaworld are currently up by 3 centavos or 1.00% to P3.03 apiece as of 10:57 a.m., up from Wednesday's finish of P3.00. — RSJ, GMA News