Residential pre-sales defy property market headwinds, rising 9% to P96.6B

 

Property giant Megaworld registered net income of P19.0 billion in the first nine months of 2026, up 6% year-on-year, supported by consistent growth in its recurring income businesses and steady residential revenue bookings.

 

Consolidated revenues increased 3% to P66.5 billion, with office, mall, and hotel operations contributing to growth alongside real estate sales.

 

Megaworld’s hospitality business, now under Megaworld Global Hotels and Resorts, remained its fastest-growing recurring income segment, with hotel revenues rising 12% year-on-year to P4.6 billion.

 

Megaworld Lifestyle Malls recorded a 9% increase in rental revenues to P5.5 billion, driven by high portfolio occupancy of 95% and a 10% rise in average daily tenant sales, reflecting sustained consumer activity across its retail destinations.

 

The mall portfolio welcomed almost 36,000 square meters of new store openings during the first nine months, spanning food, fashion, and experiential retail concepts. These additions broadened the offerings available to township residents, office workers, and visitors, reinforcing the role of Megaworld’s malls within its integrated communities.

 

Office rental revenues rose 7% to P11.9 billion, driven by take-up from Global Capability Centers (GCCs). These tenants carry out knowledge-intensive, business-critical functions embedded in their parent organizations’ global operations, supporting longer-term space requirements.

 

As of September, Megaworld had secured renewals covering approximately 90% of office leases scheduled to expire in 2026, demonstrating tenant retention across its office portfolio and strengthening rental income visibility.

 

Earlier, BNP Paribas, a Paris-based Fortune Global 500 financial institution, selected Uptown Eastgate in Uptown Bonifacio for a delivery center supporting its global Corporate and Institutional Banking business. The transaction reflects the appeal of Megaworld’s townships to multinational companies seeking access to talent, connectivity, and amenities that support their operations and employees.

 

Residential pre-sales rose 9% year-on-year to P96.6 billion, reflecting the continued appeal of Megaworld’s township-based developments even amidst property market headwinds. Provincial projects accounted for nearly half of total pre-sales, highlighting demand for integrated communities that bring homes closer to workplaces, retail and leisure destinations, and essential services. The nine-month pre-sales figure is already equivalent to over 77% of the company’s P125.0 billion full-year target.

 

Real estate sales bookings climbed to P40.6 billion, supported by steady construction progress across ongoing developments.

 

Megaworld ended the period with a net debt-to-equity ratio of 0.24x, reflecting prudent balance sheet management and supporting its capacity to fund ongoing developments.

 

“Our nine-month results demonstrate the strength of Megaworld’s township model and the importance of prudent financial management in delivering growth amid property market and macroeconomic headwinds. Financial discipline remains central to our strategy, balancing investments in our townships with the need to preserve liquidity and maintain a sound balance sheet. This approach gives us the flexibility to navigate near-term challenges while pursuing opportunities that create long-term value for our shareholders,” says Lourdes T. Gutierrez-Alfonso, president and CEO, Megaworld.

 

Megaworld continues to pursue its long-term leasing expansion strategy, targeting two million square meters of office gross leasable area (GLA) and one million square meters of retail GLA by 2030, bringing total leasing GLA to three million square meters.