Megaworld books P5.83B net income in Q1, up 16%

Tycoon Andrew Tan's property giant Megaworld Corp. began 2025 with a double-digit bottom line growth in the first quarter.

In a disclosure to the Philippine Stock Exchange (PSE) on Wednesday, Megaworld reported a net income of P5.83 billion in the first three months of 2025, up 16% year-on-year.

This was on the back of 11% growth in the property developer's consolidated revenues at P20.93 billion, driven by robust performances across its core interests—residential, leasing, and hotel operations.

"This strong start to the year is a reflection of our clear strategy and the strength of our diversified portfolio. All of our core businesses—residential, office, malls, and hotels—grew during the first quarter. More than half of our township developments are in the provinces, and the opportunity for expansion and growth is there," said Megaworld president Lourdes Gutierrez-Alfonso.

"Megaworld remains to be the top contributor to the revenue pie of the Alliance Global Group. This quarter's results affirm the strength of the company's township model, which thrives because of the unique connections it fosters between people, businesses, and experiences. At the same time, the LIVE-WORK-PLAY concept that Megaworld pioneered in the Philippines has been a proven model of sustainability through the years," said Kevin Tan, president and CEO of Alliance Global Group, the parent firm of Megaworld.

Broken down, Megaworld said its revenues from real estate sales rose 8% year-on-year to P13.09 billion, as strong sales of projects in both Metro Manila and key growth centers in the provinces continued to reflect healthy demand.

Leasing revenues also increased by 15% to P5.34 billion, driven by sustained demand from high-value tenants and the synergy between Megaworld's office and retail ecosystems.

Megaworld said its premier offices segment posted a 17% increase in revenues to P3.69 billion, supported by new lease signings and expansion from existing tenants.

The company said it secured over 50,000 square meters of new office leases during the quarter, the highest quarterly total in five years, which included both expansions and new tenants from top-tier BPOs and multinational companies.

Megaworld added that its lifestyle malls saw its revenues rise by 11% to P1.66 billion, driven by rising foot traffic—which has already surpassed pre-pandemic 2019 levels—continued momentum in consumer spending, and over 13,000 square meters of new tenant openings during the quarter.

The company said its hotels and resorts business, meanwhile, posted the fastest growth among all business units, with revenues soaring 27% year-on-year to P1.43 billion.

Megaworld said it has a portfolio of 35 townships across the country and land bank of some 7,000 hectares.

The property giant said it is on track to launch more township developments this year as part of its continued expansion to the provinces.

The company is targeting to grow its office gross leasable area (GLA) to two million square meters by 2030, and its retail GLA to one million square meters by 2030.

Both targets were seen to bring Megaworld's total leasing portfolio GLA to three million square meters by 2030. — VDV, GMA Integrated News