D.M. Wenceslao Q1 profit slips on weaker residential revenues

D.M. WENCESLAO & ASSOCIATES, Inc. reported a 2.14% decline in first-quarter (Q1) net income to P550 million from P562 million a year earlier, as weaker residential revenues offset steady recurring income from its leasing businesses.

In a statement on Wednesday, the listed property developer said recurring revenues from land leases, commercial buildings, and other leasing activities reached P823 million during the period, accounting for 87% of total revenues.

Residential revenues declined 31.14% to P115 million from P167 million a year earlier.

The company said MidPark Towers has begun seeing more residents move in, contributing to the growing residential population within Aseana City and increasing activity in nearby commercial developments such as Parqal.

D.M. Wenceslao ended the first quarter with a debt-to-equity ratio of 0.07x and a net cash position of P1.7 billion.

The company said the operating environment remains challenging amid inflation staying above the Bangko Sentral ng Pilipinas’ target range and elevated policy interest rates, which could affect the pace of recovery in the property market.

“These conditions could affect the pace of recovery in the property market as businesses and consumers face higher costs and tighter financial conditions,” the company said.

Chief Executive Officer Delfin Angelo “Buds” C. Wenceslao said the company would continue focusing on recurring income and phased development within Aseana City despite the challenging economic environment.

“This environment does not change DMW’s strategy; it reinforces it,” Mr. Wenceslao said.

“In a more difficult market, the strength of a real estate platform is tested by the quality of its assets, the resilience of its recurring income, and the discipline of its balance sheet. We will continue to move forward with discipline, prioritize recurring income, and build Aseana City in a way that compounds value over time,” he added. — Alexandria Grace C. Magno