Megaworld Corp., the pioneer of the township development model in the country, reported a six percent increase in first-quarter net income as surge in retail spending and recovery in its hotel business offset broader real estate industry headwinds.

In a disclosure to the Philippine Stock Exchange, the firm said its net income rose to ₱6.2 billion in January to March from ₱5.8 billion in the same period a year earlier.

Megaworld’s growth maintained the developer’s momentum following the record performance in 2025, driven by residential sales, office leasing, and hospitality.

Consolidated revenues grew to ₱21.6 billion, a slight increase from ₱20.9 billion in the previous year. While the property sector has grappled with high interest rates and global geopolitical uncertainty, Megaworld President and Chief Executive Officer Lourdes Gutierrez-Alfonso attributed the resilience to the company’s “financial prudence” and a strategic pivot toward provincial expansion.

“Our first quarter results reflect the compounding strength of our recurring income base as well as the company’s financial prudence to ensure a healthy balance sheet amid geopolitical uncertainties that continue to weigh on global markets,” Gutierrez-Alfonso said.

The township model, which integrates residential, office, and retail components, continues to anchor domestic demand through self-reinforcing communities, according to Gutierrez-Alfonso.

Leasing revenues, a key metric for recurring income, climbed six percent to ₱5.6 billion. The growth was led by Megaworld Lifestyle Malls, where revenue jumped nine percent to ₱1.8 billion.

The company saw more than 12,000 square meters of new store openings during the quarter, signaling sustained consumer appetite for experiential retail. Meanwhile, the Megaworld Premier Offices division posted a fouer percent revenue gain to ₱3.8 billion.

Despite a shifting global workplace landscape, the developer transacted over 95,000 square meters of office space in the first quarter, with nearly 80 percent of leases due for renewal in 2026 already secured.

The company’s hospitality arm, Megaworld Hotels & Resorts, posted an eight percent rise in revenue to ₱1.5 billion, benefiting from higher room rates and a resurgence in meetings, incentives, conferences, and exhibitions (MICE).

The quarter was highlighted by the opening of the ₱1.5-billion Mactan Expo in Cebu, a standalone convention facility designed to capture the growing MICE market in the Visayas region.

Residential real estate sales remained stable at ₱13.3 billion compared to the previous year, though the figure represented a 15 percent jump from the fourth quarter of 2025. Revenue recognition was bolstered by construction progress in prime Metro Manila hubs like Uptown Bonifacio and Westside City. During the period, the firm also launched its 37th township, the 97-hectare Sugartown in Negros Occidental. Megaworld reiterated its long-term goal to expand its total leasing portfolio to 3 million square meters by 2030. (James A. Loyola)