Megaworld Announces Strong First Quarter 2025 Performance
Megaworld Corporation, the Philippines’ pioneering force in township developments, announced a powerful start to 2025 in Manila, Philippines. This performance demonstrates the resilience and growth potential of the Philippine real estate sector. The company reported a 16% year-on-year surge in net income, reaching a robust P5.83 billion in the first quarter. This impressive performance underscores Megaworld’s strategic focus and the enduring appeal of its integrated live-work-play communities.
The company’s consolidated revenues also expanded significantly, climbing by 11% to P20.93 billion. Consistent and strong contributions across all of Megaworld’s core business segments fueled this growth: residential property sales, leasing (office and retail spaces), and hotel operations.
Executive Insights
Lourdes Gutierrez-Alfonso, President of Megaworld Corporation, highlighted the company’s strategic direction. “This strong start to the year reflects our clear strategy and the strength of our diversified portfolio,” she stated. “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.”
Kevin L. Tan, President and CEO of Alliance Global Group, Megaworld’s parent company, emphasized the company’s crucial role within the conglomerate and the strength of its core model. “Megaworld remains the top contributor to the revenue pie of the Alliance Global Group,” Tan affirmed. “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.”
Key Performance Highlights
- Residential Real Estate Sales: Revenues from property sales experienced a healthy 8% year-on-year growth, reaching P13.09 billion. Strong demand for Megaworld’s residential projects in both Metro Manila and key growth centers in the provinces drove this growth. Consistent construction progress across various developments also facilitated steady revenue recognition.
- Leasing Revenues: The leasing segment demonstrated significant momentum, with revenues climbing by 15% to P5.34 billion. Sustained demand from high-value tenants and the synergistic benefits of Megaworld’s integrated office and retail ecosystems fueled this. The company continues to attract and retain leading businesses in the BPO, multinational, and lifestyle sectors, highlighting the attractiveness of its townships for both businesses and consumers.
- Megaworld Premier Offices: This unit saw an impressive 17% increase in revenues, reaching P3.69 billion. New lease agreements and expansions from existing tenants supported this growth. Notably, Megaworld secured over 50,000 square meters of new office leases during the quarter, marking the highest quarterly total in five years. These new leases include both expansions and new tenants from top-tier BPOs and multinational companies.
- Megaworld Lifestyle Malls: Revenues in this segment rose by 11% to P1.66 billion. A significant increase in foot traffic, which has now surpassed pre-pandemic 2019 levels, drove this growth. Continued momentum in consumer spending and the opening of over 13,000 square meters of new tenant spaces further contributed to this positive performance.
- Megaworld Hotels & Resorts: This segment achieved the most rapid growth, with revenues soaring by 27% year-on-year to P1.43 billion. Higher room rates, boosted by attractive hotel stay packages, experiential promotions, and events catering to both business and leisure travelers, drove this significant increase.
Strong Financial Position and Future Outlook
Megaworld continues to be a dominant force in the Philippine real estate landscape. Total assets neared half a trillion pesos as of the end of March 2025. This reflects the company’s strong balance sheet and its ongoing investments in high-value developments across its extensive land bank of approximately 7,000 hectares spanning 35 townships nationwide.
Looking ahead, Megaworld is poised for further expansion. The company plans to launch more township developments across the Philippines throughout the year, particularly focusing on the provinces.
Megaworld has also set ambitious growth targets for its leasing portfolio. The company aims to increase its office gross leasable area (GLA) to two million square meters and its retail GLA to one million square meters by 2030. Achieving these targets will bring Megaworld’s total leasing portfolio GLA to an impressive three million square meters by 2030, further solidifying its position as a leading integrated property developer in the Philippines.
