Megaworld profit hits record PHP12B in H1 2025

Megaworld Corporation reported record-breaking earnings in the first half and second quarter of 2025, with net income surging 23 percent year-on-year to PHP12.09 billion.

Second quarter earnings alone rose 31 percent year-on-year to PHP6.26 billion, driven by growth across all core business segments — residential, leasing, and hospitality.

“Our strong first half and second quarter results reaffirm the strength and adaptability of our township strategy,” said Megaworld President and CEO Lourdes Gutierrez-Alfonso.

“We are always focused on ensuring that our core segments will continue to deliver exceptional performance even in challenging environments.”

Consolidated revenues for the first half climbed 10 percent year-on-year to PHP43.09 billion, with second quarter revenues also rising by 10 percent from a year earlier.

The company’s leasing business remained a major growth driver.

Office leasing revenues through Megaworld Premier Offices rose 17 percent year-on-year to PHP7.40 billion in the first half and nearly 18 percent to PHP3.7 billion in the second quarter.

Growth was fueled by new assets, lease contracts, and continued rent escalations.

During the second quarter, Megaworld Premier Offices closed nearly 100,000 square meters in new leases, led by expansions from top-tier BPOs and Fortune 500 multinational firms in key townships.

Despite industry-wide challenges, Megaworld’s differentiated office portfolio continued to outperform the market.

Leasing revenues of Megaworld Lifestyle Malls grew 10 percent year-on-year to PHP3.33 billion in the first half and 9.4 percent to PHP1.67 billion in the second quarter.

This was supported by growing foot traffic and premium tenant leases.

The company recorded more than 30,000 square meters of new tenant openings during the period, including Japan’s home brand Nitori, Korea’s fashion label 8Seconds, and China’s lifestyle store KKV.

It also expanded Lucky Chinatown Mall in Binondo with the launch of the Imperial Wing, where several retail brands opened in the first half.

Hotel revenues posted the highest growth among all business units, climbing 19 percent to PHP2.81 billion in the first half and 12 percent to PHP1.39 billion in the second quarter.

Higher room rates and room inventory supported this segment’s growth.

In the second quarter, Megaworld announced a strategic partnership with global hotel chain Accor to elevate and expand its hospitality portfolio.

Real estate sales rose 9 percent year-on-year to PHP27.12 billion in the first half and 10 percent to PHP14.03 billion in the second quarter.

Strong residential demand and project completions in Metro Manila and provincial growth centers powered this performance.

Key contributors included Uptown Bonifacio, McKinley Hill, McKinley West, Eastwood City, ArcoVia City, Iloilo Business Park, Maple Grove, and The Upper East Bacolod.

Megaworld also launched its 36th township during the first half — the 116-hectare Nascala Coast in Nasugbu, Batangas — under subsidiary Global-Estate Resorts, Inc. (GERI).

This PHP5-billion beachside township will include residential villages, seaside condominiums, commercial hubs, and leisure and wellness destinations.

“What excites us most is the broad-based strength we are seeing — offices, malls, residential, and hotels are all growing,” Gutierrez-Alfonso added.

“That gives us confidence as we scale further. We’re pushing forward with more townships, smarter spaces, and deeper integration across our developments, but at the same time, making sure that we build responsibly and sustainably.”

Megaworld now has 36 townships nationwide covering about 7,000 hectares.

It plans to launch another large-scale township before the end of the year as part of its continued expansion into key provincial areas.

The company targets to expand its office gross leasable area (GLA) to two million square meters by 2030 and its retail GLA to one million square meters within five years.

These targets will raise Megaworld’s total leasing portfolio GLA to three million square meters by 2030.

As of end-June 2025, Megaworld’s total assets stood at around PHP500 billion, underscoring its solid balance sheet and continued investments in high-value developments.