Property firm posts record P24.5B first-half income

A major property developer reported a record-high net income of P24.5 billion for the first half of 2025, an 11 percent increase from P22.1 billion in the same period last year, driven by stronger consumer spending, tourism recovery, and solid gains across its core businesses.

The firm said consolidated revenues rose five percent to P68 billion from P64.7 billion last year, with rental income accounting for 60 percent of the total, followed by real estate sales (29 percent), and other sources including cinema, food, and amusement (11 percent).

“Our results underscore the resilience of our businesses and the strength of our diversified portfolio,” company President Jeffrey Lim said. “With our capex program progressing as planned, we are well-positioned to drive long-term growth across key markets.”

Malls contributed the largest share of earnings at 69 percent, totaling P17 billion, up 14 percent year-on-year. Higher foot traffic, new attractions, and improved tenant performance at major properties—including the redeveloped flagship Mall of Asia—drove the segment’s performance.

Residential earnings grew two percent to P5.1 billion from P5 billion, supported by revenue from completed units and steady take-up. Lim noted a decline in cancellations during June and July, adding that the company is prioritizing launches in provincial areas where demand remains strong.

“Sixty-five percent of our P24.5 billion in reservation sales came from mid-rise regional projects,” Lim said.

The office and warehouse segment posted P1.7 billion in income, accounting for seven percent of total earnings, while hospitality and convention center revenues rose 20 percent to P635 million, or three percent of the total.

Earnings before interest, taxes, depreciation, and amortization rose 10 percent to P41.6 billion, while operating income increased 11 percent to P34.4 billion.

The company is maintaining a P100 billion capital expenditure program this year, with projects focused on regional expansion, commercial leasing, and infrastructure developments.

Growth prospects in the second half are expected to be driven by easing inflation, minimum wage adjustments in Metro Manila, and lower interest rates, which Lim said could boost residential sales.

The company also plans to raise P15 billion to P20 billion through retail bonds in the fourth quarter of 2025 to refinance maturing obligations and support rising development costs.

New malls in Laoag and La Union, and additional office towers under development, are projected to enhance rental income and support the firm’s growth outlook in the coming quarters.