AYALA CORP. said it expects overall stability across its business units this 12 months, although performance may vary by segment depending on market conditions.
“All our businesses might be resilient. All of them. With no exception. You would possibly have one or two businesses not having the ability to make the identical profits or might register losses, but they might be resilient,” Ayala Corp. President and Chief Executive Officer Cezar P. Consing said in the course of the company’s media briefing on Friday last week.
He said the actual estate segment may face pressure from higher rates of interest following the Bangko Sentral ng Pilipinas’ decision last week to boost its key policy rate by 25 basis points to 4.5%, ending an easing cycle.
He added that leasing and other recurring income streams may partly offset the impact.
Ayala Corp.’s core net income, excluding one-off items, rose 7% to P48.3 billion last 12 months, supported by stronger results from Bank of the Philippine Islands and Ayala Land, Inc. (ALI), in addition to recoveries in non-core units that offset declines at Globe Telecom, Inc. and AC Energy & Infrastructure.
ALI reported consolidated net income of P39.1 billion for 2025, up 38.7% from P28.2 billion in 2024, driven by leasing and hospitality and gains from portfolio management.
During its annual stockholders’ meeting on Thursday last week, ALI said it’s maintaining a solid financial position while expanding its recurring income businesses, particularly leasing and hospitality.
The corporate said it continues to administer its portfolio as a part of its long-term capital strategy, including reviewing assets for possible reinvestment into higher-return opportunities.
“Capital recycling has turn into one among our key levers… we repeatedly unlock value while retaining exposure to quality income streams. This energetic portfolio management means we are usually not passively holding assets,” ALI Chief Finance Officer and Treasurer Jed Quimpo said.
ALI reported a net debt-to-equity ratio of 0.8x and an interest coverage ratio of greater than 4 times, indicating moderate leverage and capability to service debt. Total debt stood at about P300 billion, supported by an asset base of roughly P1 trillion.
About P25 billion in debt is ready to mature in 2026, with the corporate expected to tap existing funding sources, including the bond market, to satisfy these obligations.
ALI is expanding its leasing and hospitality portfolio to extend recurring income.
The corporate plans so as to add about 270,000 square meters of latest mall and office space this 12 months, together with the reopening of the Mandarin Oriental hotel.
Over the subsequent five years, it goals to expand its leasing footprint by greater than 1 million square meters to balance earnings between property development and recurring income.
In its residential segment, ALI said demand stays regular, supported by selective project launches across key estates. It’s targeting the delivery of about 13,000 units this 12 months, including about P124 billion in premium segment turnovers.
Mr. Consing said Ayala Corp. is reviewing its capital expenditures for 2026 and expects spending to be broadly in step with last 12 months’s P180-billion level, below the sooner goal of P220 billion to P230 billion.
“Once we were entering this 12 months, we said P220-230 billion. At that time, this was before the oil crisis, so we were really considering of ramping up. Now we’re reviewing that number again because we might need to calibrate that down,” he said.
Ayala Corp. is the holding company of the Ayala Group, with businesses spanning real estate, banking and financial services, telecommunications, power generation, healthcare, logistics, infrastructure, industrial manufacturing, education, and technology services. — Alexandria Grace C. Magno