D.M. WENCESLAO and Associates, Inc. expects to add 200,000 square meters (sq.m.) of gross leasable area (GLA) and about 30,000 sq.m. of sellable floor area (SLA) in its portfolio next year.
The addition will be through the completion of three projects, namely: Aseana Plaza, Aseana Mainstreet 2, and One Parq Suites.
Aseana Plaza and Aseana Mainstreet 2 are the two new additions to the company’s commercial leasing segment, which will add close to 200,000 sq.m. of GLA. They will follow the completion of its Parqal project this year.
“This year, the expected completion of Parqal will add another 70,000 sq.m of GLA, which will bring our total [GLA] to 232,500 sq.m.,” D.M Wenceslao Investor Relations Officer Jeffrey Lucero said at the Philippine Stock Exchange STAR Investor Day last week.
One Parq Suites will be the company’s new addition to its residential portfolio. The third residential development is expected to add 30,000 sq.m. of SLA to the company’s residential inventory that will rise in Makati City.
Meanwhile, its ongoing 15-storey residential project, Midpark Towers, was reported to be at 38% construction progress. It is situated in Aseana City and bordered by Aseana Ave. and Macapagal Blvd.
In the second quarter, the company’s attributable net profit rose to P372.23 million, a 23.7% increase from last year’s P300.8 million.
The company’s topline climbed 41.6% to P779.4 million in the second quarter, from P550.39 million a year ago.
Meanwhile, Mr. Lucero said that the company expects office vacancies to rise to 18.2% by the end of 2022.
“The office market, as you know, has been facing challenges, particularly during the pandemic. Vacancies rose because of the challenges caused by the Covid-19 (coronavirus disease 2019),” he said.
“These projections assume that POGO (Philippine Offshore Gaming Operator) market will be muted but with the POGO market recovering, we anticipate that vacancies will drop to 14.46% by the end of 2024,” Mr. Lucero said.
The company’s rental revenues from buildings amounted to P184.16 million in the second quarter, lower by 6.4% than the previous year’s P196.74 million.
On the stock market on Friday, shares in D.M. Wenceslao slipped by 0.44% or P0.03 to P6.85 apiece. — Justine Irish P. Tabile