CONSTRUCTION firm D.M. Wenceslao & Associates Inc. expects ongoing projects, particularly its mixed-use development Parqal, to drive earnings growth this year despite continuing headwinds.
“For our developments, Parqal, our mixed-use development, is set to benefit from tenants shifting their preference to experiential environments given its amenities, public landscapes, and top-tier retail and food & beverage (F&B) shops,” D.M. Wenceslao director and CEO Delfin Angelo Wenceslao said during the company’s annual stockholders’ meeting on Friday.
He said the opening of Parqal this year would provide a fresh income stream.
“In addition, the first full-year land lease revenues from St. Luke’s Medical Center and other new locators will also help boost rental revenues.
“Wenceslao said that continued take-up in recently opened properties at 8912 Asean Avenue (an office development) and 58 Jupiter (a mixed-use building) would help drive revenues and increase margins.
“As for MidPark Towers, sustained construction progress continues, increasing the number of accounts qualified for revenue recognition and additional sales take-up will help drive residential earnings,” he added.
Wenceslao said the company was continuing to adapt to the changing landscape of the office market as more and more clients show a preference for sustainable and experiential environments, pointing out that Parqal was a prime example of this new trend.
“On how we are adapting to the post-Covid office landscape, the office space demand we are seeing now is that developers should offer not only working spaces that have functionality but also with experiential environments, which most of our properties have, like Parqal, for example,” he added.
Parqal consists of four independent nine-story buildings with green landscapes and recreational facilities connected by a park, which will reportedly be the first of its kind in the Philippines.
“It will have around 70,000 square meters of leasable commercial space, and around half of this will be for retail and F&B tenants, and the other half will be for office tenants. The opening of Parqal is expected to significantly boost our rental revenues,” Wenceslao said.
The listed construction firm reported a 45.3-percent drop in first-quarter net income to P525.66 million from P960.5 million in the same period last year as a result of having no land sales during the quarter and a higher cost of services.D.M. Wenceslao shares ended flat on Friday at P6.50 apiece.