<\/p>\n
AYALA LAND, Inc. (ALI) said it’s scaling back capital spending and leaning more heavily on its leasing business as global uncertainties weigh on the property sector, signaling a more defensive stance.<\/p>\n
\u201cThere\u2019s little question that the Middle East crisis is a major disruptor, especially for the property development industry,\u201d ALI Chairman Jaime Augusto Zobel de Ayala said in the course of the company\u2019s annual stockholders\u2019 meeting on Thursday. \u201cIn times like these, our top priority is stability over aggressive growth.\u201d<\/p>\n
He said the corporate is concentrated on preserving liquidity and maintaining flexibility.<\/p>\n
\u201cWe\u2019re focused on ensuring ample liquidity and maintaining the flexibleness to act swiftly when the environment improves,\u201d he said. \u201cWe’ve got also scaled down our capital expenditure (capex) plans as a part of our balance sheet management.\u201d<\/p>\n
ALI had planned P70 billion to P80 billion in capital expenditures this yr, about 38% for leasing. In 2025, it spent P92.9 billion, with 38% for property development, 29% for leasing expansion, 18% for estate build-out, and 15% for land acquisition.<\/p>\n
Mr. Zobel said the corporate can also be adjusting its development pipeline, noting it’ll \u201cmanage our residential launches and reduce our inventory\u201d while strengthening recurring income streams.<\/p>\n
\u201cThe strategy we put in place is to pivot towards leasing through expanding our leasing footprint and reinventing our malls and hotels,\u201d he said. \u201cOur concentrate on constructing a stronger recurring income business is precisely to assist us weather disruptions and cycles with more dependable revenue streams.\u201d<\/p>\n
The corporate also cited macroeconomic pressures, including \u201crising inflation, elevated rates of interest, and a weaker peso,\u201d as additional headwinds.<\/p>\n
In its latest disclosures, ALI said property development accounted for about 65% of its real estate revenues in 2025, while leasing and hospitality contributed 28% and services 7%.<\/p>\n
EARNINGS PERFORMANCE<\/strong><\/p>\n ALI President and Chief Executive Officer Anna Ma. Margarita B. Dy said leasing is predicted to drive growth over the medium term.<\/p>\n \u201cOur leasing business is predicted to stay on a growth trajectory and will likely be the first driver of our company\u2019s expansion,\u201d she said.<\/p>\n She added that each one latest leasing projects over the subsequent three years will likely be positioned throughout the company\u2019s estates.<\/p>\n For 2025, ALI reported consolidated net income of P39.1 billion, up 38.7% from P28.2 billion in 2024, driven by leasing and hospitality and gains from portfolio management.<\/p>\n Leasing and hospitality revenues rose 7% to P48.7 billion from P45.6 billion. Shopping mall revenues increased 5% to P24.2 billion from P23 billion, while office leasing revenues reached P12.2 billion. Hospitality revenues climbed 9.3% to P10.6 billion from P9.7 billion, boosted by the Recent World Makati Hotel acquisition.<\/p>\n \u201cBy 2027, we expect earnings before interest, taxes, depreciation, and amortization to be roughly balanced between leasing and development,\u201d Ms. Dy said.<\/p>\n Mariana Zobel de Ayala, president of Ayala Malls and head of the leasing and hospitality group, said the corporate plans to expand its retail footprint.<\/p>\n \u201cLooking forward to 2026, we are going to open over 200,000 square meters of latest retail space, our largest annual addition in history,\u201d she said.<\/p>\n She added reinvestments in malls and hotels are expected to deliver a \u201c15-20% uplift in rents and room rates upon stabilization.\u201d<\/p>\n ALI can also be expanding into industrial real estate, including cold storage facilities.<\/p>\n The corporate maintained a disciplined approach to its residential business, reporting sales of P125 billion in 2025 despite launching 42% fewer projects, while inventory improved to 19 months.<\/p>\n Chief Finance Officer Jose Eduardo A. Quimpo II said ALI continues to recycle capital, including through asset infusions into AREIT, Inc.<\/p>\n \u201cWe aren’t passively holding assets. We’re continually optimizing the balance sheet to catalyze returns and maximize value,\u201d Mr. Quimpo said.<\/p>\n ALI returned 65% of its prior-year income to shareholders through dividends and share buybacks.<\/p>\n The corporate said its balance sheet stays strong, with net gearing at 0.78:1 supported by predominantly long-term fixed-rate debt.<\/p>\n \u201cWe’ve got at all times deliberately kept our balance sheets strong so we are able to withstand periods like this, and just as importantly, position ourselves to capture opportunities once they emerge,\u201d Mr. Zobel said.<\/p>\n On the local bourse on Thursday, ALI shares fell by 0.85% to P16.34 each. \u2014 Alexandria Grace C. Magno<\/strong><\/p>\n<\/p><\/div>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Evo City is Ayala Land\u2019s 207-hectare mixed-use estate in Kawit, Cavite. \u2014 AYALALAND.COM AYALA LAND, Inc. (ALI) said it’s scaling back capital spending and leaning more heavily on its leasing business as global uncertainties weigh on the property sector, signaling a more defensive stance. \u201cThere\u2019s little question that the Middle East crisis is a major […]<\/p>\n","protected":false},"author":1,"featured_media":323631,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[19287,3430,452,12221,32631,3074,4139,33507],"class_list":["post-323630","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-ayala","tag-global","tag-land","tag-leans","tag-leasing","tag-risks","tag-spending","tag-trims"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/posts\/323630","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/comments?post=323630"}],"version-history":[{"count":2,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/posts\/323630\/revisions"}],"predecessor-version":[{"id":323633,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/posts\/323630\/revisions\/323633"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/media\/323631"}],"wp:attachment":[{"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/media?parent=323630"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/categories?post=323630"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/tags?post=323630"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}