Megaworld’s H1 profit rises on core business expansion

MANILA, Philippines — Property giant Megaworld Corp. delivered a five-percent increase in net income to P12.7 billion in the first half  on the back of sustained expansion of its recurring income businesses.

Broad-based growth across office, mall and hotel businesses boosted revenues to P44.2 billion during the period.

“Our first-half performance demonstrates Megaworld’s ability to deliver growth across all segments even amid a challenging property market. This outperformance reflects the enduring advantage of our integrated townships, where complementary uses reinforce demand across the portfolio,” Megaworld president and CEO Lourdes Gutierrez-Alfonso said.

Gutierrez-Alfonso said the company has ample financial flexibility to sustain execution and pursue growth opportunities even in a more volatile macroeconomic environment, supported by a strong and prudently managed balance sheet.

During the first semester, Megaworld Hotels and Resorts was the fastest-growing recurring income segment, accelerating by 11 percent to P3.1 billion.

The growth was supported by the opening of the 405-room Belmont Hotel Iloilo, the largest hotel in Iloilo City to date in terms of room keys, which expanded Megaworld’s hotel portfolio in Iloilo Business Park to almost 1,000 rooms.

Megaworld Lifestyle Malls, meanwhile, posted an eight-percent jump in revenues to P3.6 billion during the period, with tenant sales and foot traffic maintaining strong momentum.

Occupancy remained high at 95 percent, with the mall portfolio welcoming over 16,000 square meters of new store openings during the first six months spanning food, fashion and experiential retail concepts.

With the stability of Megaworld’s tenant base, office rental revenues likewise improved by five percent to P7.8 billion.

Office lease renewals for both Megaworld Premier Offices and Megaworld Global Offices surpassed 122,000 square meters during the period.

Megaworld said it had already secured renewals covering more than 80 percent of office leases scheduled to expire in 2026, underscoring the strong tenant retention and stickiness of its office portfolio.

The company saw residential pre-sales jump by 15 percent year-on-year to P63 billion amid strong take-up from provincial projects, while residential revenue bookings stood at P27.2 billion, driven by steady construction progress across ongoing developments.

Megaworld said the company maintained its development and construction cadence throughout the period, continuing to deploy capital to advance its projects and meet its commitments to customers.