Residential pre-sales up 15% to P63B during the first six months of 2026

 

MANILA, Philippines, August 11, 2026 – Property giant Megaworld registered a net income of P12.7 billion in the first half of 2026, up 5% year-on-year, driven by the sustained expansion of its recurring income businesses amid macroeconomic headwinds.

 

Consolidated revenues climbed to P44.2 billion, supported by broad-based growth across Megaworld’s office, mall, and hotel businesses.

 

Megaworld Hotels & Resorts was the fastest-growing recurring income segment, with double-digit revenue growth of 11% to P3.1 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. This strengthens Megaworld’s position in capturing the growing leisure, corporate travel, and MICE demand in Iloilo.

 

Megaworld Lifestyle Malls, meanwhile, delivered an 8% increase in revenues to P3.6 billion during the period, with tenant sales and foot traffic maintaining a strong momentum, while portfolio occupancy remained high at 95%.

 

The mall portfolio welcomed over 16,000 square meters 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 5% to P7.8 billion, reflecting the stability of Megaworld’s tenant base, which is anchored by Global Capability Centers (GCCs) and Knowledge Process Outsourcing firms. These tenants perform knowledge-intensive, business-critical functions that are deeply embedded into enterprise operations, underpinning longer planning horizons and more stable space requirements.

 

Office lease renewals for both Megaworld Premier Offices and Megaworld Global Offices surpassed 122,000 square meters in the first half across Eastwood City in Quezon City; Uptown Bonifacio and McKinley Hill in Taguig City; Iloilo Business Park in Iloilo City; and Southwoods City in Biñan, Laguna, among others.

 

Only halfway through the year, Megaworld had already secured renewals covering more than 80% 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% year-on-year to P63 billion during the first half of the year, after registering a remarkable increase in residential sales during the second quarter to P33.3 billion, up 20% - sharply outperforming the broader residential market.

 

Strong take-up from provincial projects, including those in Ilocandia Coastown and Paragua Coastown townships, provided further momentum for Megaworld. This stood in stark contrast to the overall Metro Manila market, where net unit pre-sales fell 47% over the same period, according to Colliers Philippines. Megaworld’s sharp outperformance underscored the appeal of its residential offerings within self-sustaining townships, where homes are seamlessly integrated with workplaces, retail and leisure destinations, hotels, open spaces, and essential services.

 

Residential revenue bookings climbed to P27.2 billion, underpinned by steady construction progress across ongoing developments. Megaworld maintained its development and construction cadence throughout the period, continuing to deploy capital to advance its projects and meet its commitments to customers.

 

Megaworld ended the period with P22.8 billion in cash, while its net debt-to-equity ratio further improved to 0.24x, reflecting strong liquidity and prudent financial management.

 

“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. 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,” 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. ######