Ayala Land, Inc. (ALI), the real estate arm of the Ayala Group, is slashing its capital expenditures by nearly half this year, cutting its budget to about P50 billion from P92.9 billion in 2025—a steep reduction of P42.9 billion, or roughly 46 percent.

The property giant said Thursday it cut spending to adopt a more disciplined capital strategy, prioritizing key developments, tightening launches, and keeping projects on track amid current market conditions.

“The current environment requires a more deliberate approach to how we deploy capital and manage our pipeline,” said ALI President and CEO Anna Ma. Margarita Bautista-Dy. 

“We are actively reshaping our portfolio—scaling recurring income, delivering our existing projects, and positioning the business to emerge stronger and more balanced through the cycle.”

Despite the scaled-down budget, ALI said it remains financially stable, with a net gearing ratio of 0.81:1 and an interest coverage ratio of 4.6 times.

Its leasing and hospitality units generate cash flows that help fund investments and reduce reliance on debt. Revenues from these segments rose 9 percent year-on-year in the first quarter to P12.6 billion.

The company is reallocating capital to income-generating assets while maintaining its project pipeline.

It targets to deliver about 13,000 residential units this year and expand its leasing portfolio.