D.M. Wenceslao & Associates Inc., the developer behind the Aseana City business district, reported a 5.6 percent increase in core net income last year as higher residential sales and commercial leasing offset a stagnant land rental market.

In a disclosure to the Philippine Stock Exchange, the real estate firm reported that its core profit rose to ₱1.9 billion from ₱1.8 billion a year earlier.

Recurring revenues, which include land and building leases along with ancillary sources, remained flat at ₱3.3 billion.

Despite the lack of growth in that specific top-line figure, recurring income continued to provide cushion for the company, accounting for 86 percent of its total revenue mix.

According to D.M. Wenceslao, growth was primarily driven by the company’s commercial building and ancillary segments, where rental revenues surged 43 percent to ₱2.0 billion.

The company attributed the jump to stable occupancy rates across its portfolio, even as the broader office market in the Philippines grapples with shifting hybrid work arrangements. Residential revenue also provided a boost, climbing 29 percent to ₱499 million as more units at its projects met the accounting threshold for revenue recognition.

Delfin Angelo C. Wenceslao, D.M. Wenceslao chief executive officer said the performance was a validation of the company’s “live-work-play” strategy for Aseana City, a master-planned estate located along Manila Bay.

The executive noted that the MidPark Towers project has begun hosting hundreds of residents, further integrating the residential component into the district’s commercial ecosystem.

The developer is looking to maintain its momentum through a aggressive expansion of its office footprint. “2026 will be a year of strategic execution,” Wenceslao said in the statement, noting that the first phase of Aseana Plaza is currently under construction. This project represents the next stage of the company’s premium office development.

While Wenceslao acknowledged lingering geopolitical risks, he cited a more favorable domestic monetary environment as a catalyst for the industry.

The Bangko Sentral ng Pilipinas has implemented 225 basis points of cumulative interest rate cuts since 2024, a move that developers hope will stimulate mortgage demand and lower financing costs for capital-intensive projects.

The company remains “cautiously optimistic” about the macroeconomic landscape, opting for what it described as a disciplined and measured approach to new developments. D.M. Wenceslao shares have historically traded as a play on the long-term appreciation of land values within the reclaimed Aseana City area.