For three decades, Megaworld has made a name for itself as a trailblazer in Philippine real estate. Year after year, the Company notches impressive accomplishments, further solidifying its leadership in the industry. The year 2018 was no exception.
We achieved a net profit of Php15.8 billion in 2018, a 16 percent jump from the previous year. This was driven by robust residential sales amounting to Php38 billion, a direct result of our back-to-back residential project launches, totaling Php106 billion. Megaworld developments accounted for 81 percent of these project launches, while the properties of our subsidiaries Global-Estate Resorts, Inc. and Empire East Land Holdings, Inc. made up the balance.
Megaworld’s reservation sales also continued their upward trajectory, hitting Php135 billion — the highest number in the Company’s history. Meanwhile, the dynamic take-up of our office and commercial offerings allowed us to double our rental income to Php14.3 billion in only four years’ time. Our hotel business similarly gained momentum, growing 14 percent year on year to Php1.5 billion.
The unified efforts of the Megaworld team led to the Company’s strong performance as well as its continued prominence in the industry.
In 2018, we received the highest number of awards in a single year in our history. We were recognized with 100 awards—40 percent of which were international awards. Among our standout honors were seven “Best Developer” awards. In addition, the Company’s senior leadership was named the grand winner of the “Executive Leadership Team of the Year,” a testament to exceptional leadership skills resulting in the maximization of stakeholders values.
All our milestones are progressively setting the tone for the future of the Company.
Early last year, we rolled out our “iTownships” initiative to future-proof Megaworld’s groundbreaking township concept. Since then, we have fast-tracked the incorporation of smart technology, digital technology, design innovations, and connectivity capabilities into our developments. We have also focused significantly on enhancing the green and sustainable features of our properties, as well as enriching them through museums and creative installations.
The Company’s commitment to build iTownships is not confined to its developments in Metro Manila. We announced in February 2018 that our Davao Park District, our first township in Mindanao, would be an iTownship in its own right, making use of smart technology and innovations.
While we craft a legacy of bringing value to people’s lives through our real estate offerings, we are also pursuing opportunities that will allow us to become more transformative and impactful as a developer.
In July 2018, Megaworld, through its wholly owned subsidiary Suntrust Properties, Inc., acquired Stateland, Inc., a 42-year-old real estate company known for building affordable quality homes and communities in South Luzon and several parts of Metro Manila. The acquisition has allowed Megaworld to expand its raw land portfolio by another 150 hectares.
It has also allowed the Company to own Stateland’s existing developments spanning more than 200 hectares, on top of several allied and related properties.
By the end of 2018, Megaworld had already expanded its land portfolio by around 350 hectares due to large land acquisitions in Luzon, of which about 150 hectares came from Stateland.
Our Company is strategically taking the township lifestyle into more locations in the Philippines. Today, the Megaworld Group is present in over 30 cities across the country. In these cities, we consistently launch new projects to infuse new value and evolve the landscape so it always stays vibrant, relevant, and meaningful.
On the residential front, we announced our new condominium developments in Uptown Bonifacio, McKinley West, ArcoVia City, Westside City, Southwoods City, Maple Grove, Capital Town, The Mactan Newtown, and The Upper East. We are also growing our residential offerings in the Ortigas and Makati central business districts, as well as in the Iloilo Business Park.
To date, Megaworld remains the country’s largest developer and landlord of office spaces with a leasable office portfolio of around 1.1 million square meters. The most notable among our 2018 achievements in the office segment is our landmark agreement with JPMorgan Chase to build its 25-level office building in Uptown
Bonifacio, which offers an estimated 70,000 square meters of gross leasable area. It is the country’s biggest single office lease transaction in both value and space take-up in Philippine real estate history.
The growth of our Megaworld Lifestyle Malls is just as solid. We opened in Iloilo Business Park the Festive Walk Iloilo, our 17th mall, and the first full-scale lifestyle mall in Western Visayas. Meanwhile, we opened three new community malls—Three Central and San Lorenzo Place in Makati City, and The Village Square in Alabangto cater to a captive market in smaller, tighterknit neighborhoods.
Nation-building is something we actively pursue in our townships. Last year, we fast-tracked the opening of the La Salle-supervised Newtown School of Excellence at The Mactan Newtown, Megaworld’s first school venture in the Visayas. Its first school year starting June 2018 welcomed more than 60 Nursery, Kindergarten 1, and Kindergarten 2 students.
Through hotel developments, Megaworld is ready to supply more hotel rooms to support the government’s goal of 10 million tourist arrivals by 2020. In 2018, we opened two homegrown hotel brands, including Savoy Hotel Manila, and Twin Lakes Hotel in Tagaytay. We also announced our intention to bring our Belmont Hotel brand to our townships in Iloilo, Boracay, and Cebu. Similarly, a new Savoy Hotel will find a home at The Mactan Newtown.
Meanwhile, in The Upper East in Bacolod, we are set to build a luxury boutique hotel that will help boost the MICE (Meetings, Incentives, Conventions and Exhibitions) industry in the region.
Our efforts to create spaces that uplift lifestyles have resulted in an active art component in our developments. Our Iloilo Museum of Contemporary Art (ILOMOCA)
opened to much fanfare in 2018 as our firstever museum venture, which also happened to be the first art institution dedicated to modern art in both the Visayas and Mindanao.
As the Company goes forward, it is not only developing future-ready real estate; it is also strengthening the community that will become its stewards. Our socio-civic arm Megaworld Foundation marked its 20th anniversary in 2018, and renewed its dedication to provide quality education to even more underprivileged youth, as well as address issues that matter most in the Philippines, from poverty and health care, to the preservation of the environment.
This 2019 is significant for Megaworld, as it will officially mark 30 years as a company. For us, it is both a celebration and a challenge. It is a good time to look back on the moments that shaped us, to internalize the experiences and lessons of the past years, and to look forward to the ways in which we can define a lasting legacy.
It is our aim to constantly create, innovate, and inspire. We continue to put in the hard work to make the Megaworld brand and our developments stand the test of time andresonate with generations of Filipinos to come.
Andrew L. Tan
CHAIRMAN and PRESIDENT