Megaworld beats property sector slump

Property giant Megaworld Corp. booked a 5-percent increase in first-half net income to P12.7 billion as its office, mall and hotel businesses helped cushion the impact of a challenging property market.

The Andrew Tan-led developer said on Wednesday its consolidated revenues reached P44.2 billion in the first six months of 2026, supported by broad-based growth across its recurring income businesses.

“Our first-half performance demonstrates Megaworld’s ability to deliver growth across all segments even amid a challenging property market,” said Lourdes Gutierrez-Alfonso, president and CEO of Megaworld.

Hotels and resorts was the fastest-growing recurring income segment, with revenues rising 11 percent to P3.1 billion.

The company attributed the growth partly to the opening of the 405-room Belmont Hotel Iloilo, which expanded its hotel portfolio in Iloilo Business Park to nearly 1,000 rooms.

The lifestyle malls segment likewise grew revenues by 8 percent to P3.6 billion, with portfolio occupancy remaining high at 95 percent.

More than 16,000 square meters (sq m) of new stores opened across its mall portfolio during the first half, spanning food, fashion and experiential retail concepts.

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Office rental revenues, meanwhile, rose 5 percent to P7.8 billion, supported by tenants largely composed of global capability centers and knowledge process outsourcing firms.

Office lease renewals exceeded 122,000 sq m during the period. Megaworld had already secured renewals for more than 80 percent of office leases scheduled to expire this year.

The residential business also showed strength despite weakness in the broader property market.