DM Wenceslao posts lower Q1 profit amid tougher property market

MANILA, Philippines – Property developer D.M. Wenceslao and Associates Inc. (DMW) posted a slight decline in first-quarter net income as recurring revenues softened amid tough market conditions.

In a disclosure on Wednesday, the developer of Aseana City said its net income reached P550 million in the first quarter of 2026, slightly lower than the P562 million recorded in the same period last year. 

READ: DM Wenceslao core profit climbs to P1.9B in 2025 

Recurring revenues—which include rentals from land, commercial buildings and other ancillary leasing sources—fell to P823 million from P899 million a year ago. Still, these accounted for 87 percent of total revenues during the quarter, underscoring the company’s continued reliance on leasing income.  

Meanwhile, residential revenues climbed to P115 million from P67 million previously, driven partly by the continued transition of MidPark Towers into a “lived-in community” within Aseana City.  

The company said the growing residential base was helping support foot traffic and patronage at Parqal, its mixed-use commercial development in the estate.  

DMW also highlighted its “robust financial position,” ending the quarter with a debt-to-equity ratio of 0.07 times and a net cash position of P1.7 billion. According to the company, this would allow it to continue supporting ongoing projects while preserving balance sheet strength despite market volatility.  

The listed developer noted that the operating environment has worsened due to rising inflation and high policy rates.

It added these factors could hinder recovery in the property sector as consumers and businesses face increased costs and tighter finances.

“This environment does not change DMW’s strategy; it reinforces it,” Delfin Angelo C. Wenceslao, DMW CEO, said.

“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. Aseana City is an integrated district where offices, residences, retail, public spaces, institutions and mobility infrastructure reinforce one another. That structure gives us the ability to navigate cycles with a long-term perspective. We will continue to move forward with discipline, prioritize recurring income, and build Aseana City in a way that compounds value over time.”

DMW is the master developer of Aseana City, a 107.5-hectare estate along Manila Bay. The company has reclaimed over 2.4 million square meters of land and completed more than 140 construction and infrastructure projects nationwide. /pai