D.M. Wenceslao and Associates Inc. posted a first-quarter net income of P550 million, down from P562 million last year, as the listed property developer leaned on recurring rental revenues to cushion the impact of a more challenging real estate market marked by elevated inflation and high interest rates.
The company said recurring revenues from land leases, commercial buildings, and ancillary leasing operations reached P823 million, accounting for 87 percent of total revenues during the quarter and highlighting the growing importance of stable cash-generating assets in an uncertain economic environment. Recurring revenue last year was P899 million.
Residential revenues contributed P115 million, down from P178 million a year ago, with MidPark Towers beginning its transition into a fully occupied residential community within Aseana City. The company said the growing residential base is expected to support retail traffic and commercial activity in nearby developments, including the Parqal mixed-use complex.
DMW’s earnings came as property developers navigate slowing demand amid tighter financial conditions. Inflation has remained above the central bank’s target range, while elevated borrowing costs continue to dampen consumer appetite for big-ticket purchases such as homes and condominiums.
Despite the softer market backdrop, the company said it remains in a strong financial position, ending the quarter with a debt-to-equity ratio of just 0.07 times and a net cash position of P1.7 billion.
Chief executive officer Delfin Angelo Wenceslao said the tougher macroeconomic environment reinforces the company’s strategy of prioritizing recurring income and disciplined expansion over aggressive growth.
“In a more difficult market, the strength of a real estate platform is tested by the quality of its assets, the resilience of its recurring income, and the discipline of its balance sheet,” Wenceslao said.
The company said it would continue pacing developments prudently while focusing on the long-term buildout of Aseana City as an integrated district combining offices, residences, retail spaces, institutions, and transport infrastructure.
