AYALA LAND, Inc. (ALI) reported a 21.74% drop in first-quarter net income to P5.4 billion and said it should reduce its 2026 capital expenditures (capex) to about P50 billion from an earlier P70-billion to P80-billion plan amid shifting market conditions.
Revenues fell by 13.99% to P37.5 billion from P43.6 billion a 12 months earlier, as weaker performance within the property development segment weighed on results, the corporate said in a disclosure on Thursday.
Property development revenues declined to P20.3 billion from P27.8 billion, reflecting softer demand and cautious buyer sentiment within the residential market.
Leasing and hospitality operations partly offset the decline. Revenues from these segments rose 9% to P12.6 billion, supported by improved occupancy, higher tenant sales, and contributions from newly opened and redeveloped assets, the corporate said.
Mall revenues reached P5.8 billion, driven by higher foot traffic and the launch of Ayala Malls Arca South, which added 17,500 square meters of gross leasable area.
Hospitality revenues increased 30% to P3.4 billion, supported by recent capability at Latest World Makati Hotel and improved performance from renovated Seda and Holiday Inn properties, in addition to Lagen Resort in El Nido.
Office leasing revenues were regular at P3 billion, with occupancy levels above industry averages, in response to the corporate.
The economic estate segment posted P439 million in revenues, up 23%, driven by higher utilization of warehouse and cold storage facilities.
Sales reservations totaled P28.2 billion within the quarter, averaging P9.4 billion per thirty days. Residential sales reached P24.4 billion, unchanged from the previous quarter, with demand coming from premium, core, and estate lot segments.
The corporate said it should adopt a more selective approach to recent project launches and deal with priority developments while continuing to deliver ongoing projects.
“The present environment requires a more deliberate approach to how we deploy capital and manage our pipeline,” ALI President and Chief Executive Officer Anna Ma. Margarita Bautista-Dy said in a press release.
“We’re actively reshaping our portfolio — scaling recurring income, delivering our existing projects, and positioning the business to emerge stronger and more balanced through the cycle,” she added.
ALI plans to deliver about 13,000 residential units across 40 projects this 12 months because it prioritizes existing inventory.
“Our strategy for 2026 is obvious: to expand our leasing and hospitality platform, maintain stability in property development, and preserve the balance sheet strength,” Ms. Dy said.
The corporate reported a net gearing ratio of 0.81:1 and an interest coverage ratio of 4.6 times, indicating stable leverage and debt servicing capability.
ALI said it’s expanding its recurring income base, with plans so as to add greater than 270,000 square meters of mall and office space and reopen the Mandarin Hotel as a part of efforts to construct a more balanced portfolio.
Capital expenditures for the primary quarter reached P23 billion, up 11% from a 12 months earlier. Spending on leasing assets rose 53% to P6.1 billion on account of expansion and redevelopment.
On the local bourse on Thursday, ALI shares fell 4.19% to P15.10 each. — Alexandria Grace C. Magno