Property developer Megaworld Corp. has announced a P2-billion share buyback programme alongside plans to channel P2.21 billion from its real estate investment trust unit into township projects in Cebu, Palawan and Bacolod.

The company confirmed in a regulatory filing that the buyback scheme began on Thursday and will run for 24 months.

“The board believes that current market prices do not reflect the true value of the company’s shares and seeks to enhance shareholder value through a share buyback program,” Megaworld said.

The programme will be funded internally, with shares acquired through the Philippine Stock Exchange (PSE) and recorded as treasury stock.

As of end-August, Megaworld’s authorised capital stock stood at P45.7 billion, composed of 45.64 billion common shares with a par value of P1 each and six billion voting preferred shares with a par value of P0.01 apiece. Of these, 32.56 billion common shares and six billion preferred shares were issued and outstanding, with 1.19 billion treasury shares.

“The buyback is positive for shareholders as it will support the company’s stock price and increase earnings per share over time,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message. He added that Megaworld’s resources and profitability would allow the programme to proceed without affecting capital expenditure plans.

In a separate disclosure, the company said P2.21 billion raised from its listed unit Megaworld Real Estate Investment Trust, Inc. (MREIT) will be used for investments in three township projects.

Megaworld confirmed P845 million will go toward its Paragua Coastown project in Palawan, which is 42% complete and scheduled for delivery in 2028. A further P830 million has been set aside for The Mactan Newtown in Cebu, currently 73% complete and also expected to finish in 2028. The remaining P537.92 million will be allocated to malls, offices and land development in Bacolod.

“Megaworld intends to use net proceeds received from the sale to fund ongoing and future investments in real estate properties in three townships located in Cebu, Bacolod, and Palawan… while the company is not contemplating acquiring land at this time, there is nothing preventing it from doing so in the future if the timing and opportunity is right,” the disclosure stated.

The firm will submit quarterly progress updates and a final reinvestment plan report to the PSE, signed by its chief financial officer, treasurer, and external auditor.

Megaworld posted a 35% year-on-year rise in attributable net income in the second quarter to P5.6 billion, with first-half profits up 25% at P10.7 billion. Growth was attributed to strong leasing, residential and hospitality operations.

On Thursday, Megaworld’s shares closed down 0.98% at P2.02 each, while MREIT shares dropped 0.88% to P13.48 apiece.