The property sector is not exactly the most exciting area of the stock market these days. That seems like an understatement and maybe even immaterial, given the economic concerns brought about by the Iran-Israel-US war that are shredding the stock market anew.
Having said that, even though it has fallen out of favor in recent years, the property sector is very relevant to all investors in the Philippines, given its size and role in wealth creation and economic development.
Despite concerns over high vacancy rates, slow-moving inventory, and deep discounts offered by developers and the secondary market, there is reason to maintain optimism over the property sector.
During the InvestPH investor conference organized by the Philippine Stock Exchange (PSE) that concluded last week, I was able to visit one of the investee companies of the ATRAM Sustainable Development and Growth Fund (SDGF), namely, DM Wenceslao & Associates (DMW).
For those not familiar with DMW, this is a boutique property development company that developed and operates Aseana City, a 200-plus-hectare mixed-use central business district (CBD) in Parañaque City. The development is sandwiched between the Mall of Asia complex in Pasay City and Entertainment City, which hosts three major integrated resorts and gaming complexes. Collectively, the three areas form the Central Business Park of the Bay Area.
While the ATRAM SDGF is diversely invested across sectors and is also invested in other listed property companies, DMW is one investee that is an interesting case. The SDGF is the only sustainability-themed unit investment trust fund (UITF) in the Philippines and its investment framework utilizes sustainability-related data to select companies in its portfolio.
In other words, it invests solely in top-ranked companies based on the integration of sustainability into their business operations and strategy.
DMW is a small-capitalized company with a market cap of around P17.5 billion as of last week, but despite its size, it has managed to set a good example of how to integrate sustainability.
In my meeting with the top management of DMW, I got an update that Aseana City is now running on 100-percent renewable or clean energy thanks to contracted power. With this, we expect that emissions intensity should improve over time and even after factoring in the impact of ongoing expansion activities.
To be fair, Aseana is only one development compared to other large-cap property companies listed in the PSE, which have multiple projects. Executing a masterplan of a CBD is not comparable to a portfolio of masterplans and smaller projects.
And it is not all hunky-dory, as with most property developers in the Bay Area, DMW has been affected by the slowdown in demand. Revenue growth was flat in 2025 and so was return on equity.
While those are important factors for the SDGF, as a long-term horizon investment strategy, what is more critical is the competitiveness of the product/services offering and financial strength to fund future growth. With its renewable energy position, this enhances DMW’s marketability under a high oil price environment, given potentially lower energy costs for the Aseana community. It maintains a net cash position, which gives the company some flexibility in a high-interest-rate environment.
This is by no means a solicitation to invest in DMW or a recommendation to buy its stock. As a prudent and holistic strategy, the SDGF also evaluates the sustainability of the financial and manufactured capitals of a company.
One of the newest features of Aseana City is the Parqal Mall. Having recently visited Parqal, I was impressed by the architectural design that allows efficient energy use and I also observed greater community engagement.
As a sustainable city, Aseana is connected to the Light Railway Transit Line 1 (LRT-1), which now extends to the south. Given its accessibility, the College of Saint Benilde is establishing campuses in the area, with a targeted opening of the School of Environment and Design and the School of Management and Information Technology, both of which seem apt given DMW’s focus on sustainability.
Most institutional portfolios tend to put a size filter that may discourage small issuer companies from integrating ESG or sustainability. This is why DMW can stand out. Despite its size, DMW has been undaunted in pitching its sustainability strategy and achievements to the institutional market.
We see their progress and maybe one day in the near future, other investors in the sustainability space will also look their way and see DMW as the proxy or benchmark for a sustainable city.