D.M. Wenceslao posts 3% income growth to P2B

PROPERTY developer D.M. Wenceslao and Associates, Inc. posted a 3% profit growth to P2.1 billion last year largely on contributions from expansion projects and despite economic headwinds.

“We kept our leverage ratios low with peso-denominated and fixed-rate debt that kept us insulated from forex fluctuations and the rise of interest rates,” D.M. Wenceslao Chief Executive Officer Delfin Angelo C. Wenceslao said in a media release on Wednesday.

Mr. Wenceslao also said that the company locked in favorable prices for most construction materials used in projects, “safeguarding our costs from the run-up in prices.”

The company reported a 9% growth in rental revenues to P2.2 billion, which was driven by an increased take-up in its newly opened buildings. Parking revenues also increased due to higher mobility.

Additionally, 52% of total revenues for the year came from rental revenues, which include rentals from land and building, common-use service area fees, and parking fees.

Residential revenues more than doubled for the year to P1.3 billion as a higher number of units became qualified for revenue recognition.

D.M. Wenceslao said core net income grew by 13%, without disclosing comparative numbers, except to say that it excluded gains related to the Corporate Recovery and Tax Incentives for Enterprises Act or the CREATE law and other one-off gains that resulted in the termination of a joint venture agreement with the company.

“We remained all systems go on our expansion plans all through 2022; we signed a 1.4[-hectare] land lease contract with St. Luke’s Medical Center,” Mr. Wenceslao said.

He also said that construction remains in full swing as the company had topped off its MidPark tower project, and 89% of its flagship commercial project Parqal had been completed as of December 2022.

Shares in the company slipped by 0.44% or 3 centavos to close at P6.85 each on the stock exchange. — Adrian H. Halili