D.M. Wenceslao and Associates, Inc. (DMW) reported that its first-half net income inched up to P918 million this year from P912 million in 2023, driven by strong leasing operations.

In a disclosure to the Philippine Stock Exchange, the firm said recurring revenues consisting of rentals from land, building, and others jumped 34 percent year-on-year to P1.6 billion, representing 86 percent of total revenues.

Notably, commercial building revenues surged 59 percent to P669 million largely due to a higher commercial gross leasable area of 235,846 square meters in the first half of 2024 versus 162,351 sqm in the the same period last year. 

This growth was fueled by robust leasing activities across the whole portfolio, with marquee logistics and traditional tenants accounting for the majority of commercial occupancy. 

Land rentals rose 14 percent to P680 million on the back of lease expansions. Residential revenues stood at P235 million in the first half of 2024, impacted by revenue recognition timing.

Gross profit increased to P1.4 billion, with land leasing gross profit contributing P662 million, representing half of the total gross profit. 

Gross profit margin climbed even higher to 76 percent as the high-margin leasing businesses of DMW accounted for 90 percent of total gross profit.

“Our performance in the first half of 2024 highlights the stability and robust foundation of our business model,” said DMW Chief Executive Officer Delfin Angelo Wenceslao.

He added that, “Our best-in-class anchor locators— including top logistics multinationals, one of the country’s largest malls, major grocery warehouse chains, and the Philippines' leading healthcare institution — ensures stable, long-term income streams.

“These partnerships, which extend up to 50 years, offer not only high margins but also significant growth opportunities through percentage-based sales collections.”