Paranaque City, Philippines, May 21, 2021 – D.M. Wenceslao and Associates, Incorporated (PSE: DMW) (“DMWAI” or “the Company”) reported its financial and operating results for the 1Q2021. DMWAI’s consolidated revenues declined 32% yoy to ₱693 million. Despite the revenue decline, net income attributable to parent equity holders rose 24% to ₱552 million as a result of a tax credit related to Corporate Recovery and Tax Incentives for Enterprise Act (CREATE) which was signed into law last March 26, 2021.
DMWAI’s residential revenues dropped 61% yoy to ₱194 million due to the impact of revenue recognition timing. Particularly, only ₱44 million revenues were booked for Pixel Residences in the 1Q2021 compared ₱480 million in the comparable period last year. Note that Pixel Residences is already near completion, a phase where construction progress and revenue booking are generally slower. On the flipside, revenues from MidPark towers reached ₱150 million from ₱18 million in the 1Q2020.
Recurring income consisting of rentals from land, building, and other revenues such as common use service area fees continued to provide a robust source of revenue for the Company. Recurring income stood at ₱497 million, accounting for 72% of total 1Q2021 revenues. Notwithstanding the threats posed by the COVID19 pandemic, the Company’s building leasing portfolio maintained a healthy occupancy rate of 90%.
“After what can only be described as a uniquely challenging 2020, we continue to navigate through the pandemic with undeterred optimism towards recovery. There is now light at the end of the tunnel, with the country’s vaccination program already in place,” said Mr. Delfin Angelo ‘Buds’ Wenceslao, Chief Executive Officer. “Aside from an expected improvement in the economic backdrop, with the DBCC projecting GDP growth of 6% to 7% this year, our leasing business is also set to receive a shot in the arm, with the expected completion of 8912 Asean Ave in 2Q2021, which will add over 69,000 sqms to our total GLA and will significantly boost DMWAI’s recurring income stream. Time and again, our recurring income-focused business model, complemented by residential sales has proven effective through different stages of the economic cycle, including a pandemic-induced downturn,” Mr. Wenceslao added.
ABOUT D.M. Wenceslao & Associates, Incorporated
DMW is an integrated property developer with expertise in land reclamation, construction and real estate development. It is the master developer and primary owner of Aseana City, a development project with a total land area of 107.5 hectares located along the coastal waters of Manila Bay. Since 1965, DMW has reclaimed more than 2.4 million square meters of land, leased or developed 260,000 square meters of land and buildings, and completed over 140 construction and infrastructure projects including large, complex government developments throughout the Philippines. For further information, visit dmwai.com or contact [email protected]