Gatchalian family-backed Philippine Estates Corp. swung to an P89.12 million net profit in the second quarter of 2026, from a P4.18 million loss a year earlier, after recognizing another payment tied to properties expropriated for the Iloilo Flood Control Project.

In a recent disclosure, the property developer said it recorded P109.9 million from its expropriation claim during the quarter, lifting pretax profit to P102.77 million from a P12.84-million loss in the same period last year.

Philippine Estates said the sharp improvement was mainly due to the partial collection of just compensation for properties expropriated in Iloilo.

For the first half, the company posted P89.47 million in net income and P100.39 million in real estate sales. This was lower than the P299.43-million profit recorded in the first half of 2025, when Philippine Estates recognized a much larger P345.71-million payment from the same expropriation claim.

The Iloilo Flood Control Project II was launched to address chronic flooding in Iloilo City, including through the Jaro Floodway. In 2006, the government initiated expropriation proceedings over properties that would be affected by the project, including land owned by Philippine Estates Corp. and Pacific Rehouse Corp. A second expropriation case involving adjacent properties followed in 2007.

Philippine Estates and Pacific Rehouse sought a combined P2.6 billion in just compensation, with Philippine Estates’ share under the final Supreme Court ruling amounting to about P1.9 billion.

The company received P193.53 million in 2024 and another P394.08 million in 2025, both net of VAT. The latest P109.9-million recognition in the second quarter brings another portion of the long-running claim into its books.

The Iloilo Flood Control Project later had an impact beyond flood mitigation. Works along the Iloilo River contributed to the development of the Iloilo River Esplanade, turning river embankments into public spaces that became part of Iloilo City’s broader redevelopment.

Philippine Estates Corp. sits within the broader business network founded by businessman William T. Gatchalian, who established The Wellex Group as the investment arm of his expanding family business.

The group became a major shareholder of PHES, while Gatchalian family members have held positions across the companies. Kenneth T. Gatchalian, William’s son and brother of politicians Win and Rex Gatchalian, was previously a PHES vice chairman.

Senate President Win Gatchalian is listed as a minority shareholder of Wellex, owning about 9.7 percent of the company, making him the third-largest named shareholder, behind his father William, with 25.52 percent, and mother Dee Hua, with 15.07 percent.