Andrew Tan-led top township developer Megaworld Corp. improved its net income by five percent to ₱12.7 billion in the first half of 2026 compared with the same period last year, driven by the sustained expansion of its recurring income businesses amid macroeconomic headwinds.

In a disclosure to the Philippine Stock Exchange (PSE) on Wednesday, Aug. 12, Megaworld said its consolidated revenues climbed to ₱44.2 billion from ₱43.09 billion, supported by broad-based growth across its office, mall, and hotel businesses.

“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,” said Megaworld President and Chief Executive Officer (CEO) Lourdes T. Gutierrez-Alfonso.

She added, “Supported by a strong and prudently managed balance sheet, we have ample financial flexibility to sustain execution and pursue growth opportunities even in a more volatile macroeconomic environment.”

Megaworld Hotels & Resorts was the fastest-growing recurring income segment, with double-digit revenue growth of 11 percent to ₱3.1 billion during the first six months of the year.

This 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, delivered an eight-percent increase in revenues to ₱3.6 billion during the period, with tenant sales and foot traffic maintaining strong momentum, while portfolio occupancy remained high at 95 percent.

The mall portfolio welcomed over 16,000 square meters (sqm) of new store openings during the first two quarters, spanning food, fashion, and experiential retail concepts.

Supported by built-in demand from township residents, office workers, hotel guests, and visitors, Megaworld Lifestyle Malls sustained high levels of consumer activity despite inflationary pressures.

Office rental revenues, on the other hand, grew five percent to ₱7.8 billion, reflecting the stability of Megaworld’s tenant base, which is anchored by global capability centers (GCCs) and knowledge process outsourcing (KPO) firms.

Office lease renewals for both Megaworld Premier Offices and Megaworld Global Offices surpassed 122,000 sqm in the first half. Megaworld has 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.

Meanwhile, residential pre-sales surged 15 percent year-on-year to ₱63 billion during the first half of the year, after registering a remarkable increase in residential sales during the second quarter to ₱33.3 billion, up 20 percent—sharply outperforming the broader residential market.

Strong take-up from provincial projects provided further momentum for Megaworld. This stood in stark contrast to the overall Metro Manila market, where net unit pre-sales fell 47 percent over the same period, according to Colliers Philippines.

Megaworld’s residential revenue bookings climbed to ₱27.2 billion, underpinned by steady construction progress across ongoing developments. The firm maintained its development and construction cadence throughout the period, continuing to deploy capital to advance its projects and meet its commitments to customers. - James A. Loyola