Ayala Land trims capex, backs leasing

Ayala Land Inc. (ALI), the property arm of the Ayala Group, will spend around P70 to 80 billion in capital expenditures this year, with the bulk earmarked for leasing assets — signaling a shift toward stable recurring income.

“This year (capex) is P70 to 80 billion, about 38 percent of that is going to be for our leasing projects and the balance is really for residential, whatever land acquisition that we are going to be paying for, because some acquisitions are to be paid over time,” ALI president and CEO Anna Ma. Margarita Bautista-Dy told reporters on Friday.

The planned spending is smaller but more targeted than the P92.9 billion deployed in 2025.

ALI posted consolidated net income of P39.1 billion last year, with stronger leasing and hospitality earnings offsetting softer property market sentiment and highlighting the rising role of recurring revenue.

Consolidated revenues grew five percent to P190.2 billion, while net income from core operations rose eight percent to P30.6 billion, fueled by robust fourth-quarter contributions from estate lots and leasing and hospitality businesses.

“Our business delivered healthy growth in 2025 despite a challenging environment, underscoring the strength of our portfolio and execution. As we enter 2026, we focus on benchmark residential launches that emphasize quality and long-term value,” Dy said.

“Our leasing portfolio continues to expand with a banner year of more than 250,000 sqm of leasable space coming online in our estates,” she added.

Property development revenues reached P113.9 billion, driven by strong estate lot and office-for-sale bookings and improving residential sales.

Sales reservations held steady at P142.3 billion, with launches totaling P60.4 billion — 77 percent residential, 23 percent commercial and industrial.

Recurring revenues expanded further, with leasing and hospitality income up 7 percent to P48.7 billion. Shopping center revenues rose 5 percent to P24.2 billion on higher occupancy and tenant sales, while office leasing climbed 5 percent to P12.2 billion on above-industry occupancy. Hospitality revenues gained 9 percent to P10.6 billion, aided by the New World Makati Hotel acquisition in H2.

ALI added 77,000 sqm of new leasing space in 2025, including expansions at TriNoma, Nuvali and Iloilo. The company returned P18.5 billion to shareholders via dividends and share buybacks — a 25 percent increase from the prior year and 65 percent of last year’s net income — with buybacks boosting core EPS growth to 10 percent.