• Net income jumps 39 percent to P39.1 billion
• Revenue up 5 percent to P190.2 billion
• Includes gain from P13.5 billion Alabang Town Center mall disposal
• Core income rises 8 percent to P30.6 billion
• Leasing revenues climb 7 percent
Property giant Ayala Land Inc. posted consolidated net income of P39.1 billion in 2025, up 39 percent from P28.2 billion in 2024, thanks to a combination of revenue growth, cost cuts and a strategic asset sale.
Revenues rose 5 percent to P190.2 billion, showing modest top-line expansion amid a tempered residential market.
Core net income, which reflects recurring operations, grew 8 percent to P30.6 billion, underscoring underlying business growth beyond the one-off transaction.
Total real estate related expenses dropped by 7 percent to nearly P104 billion.
One-time sale helps boosts other income by 275%
A contributor to the earnings surge was the sale of Alabang Town Center for P13.5 billion near the end of 2025.
Based on the terms, the deal will be paid in three equal tranches, with the first payment received by Dec. 22, 2025.
The company did not disclose the exact gain booked, but management had cited “portfolio management initiatives” as part of the year’s earnings drivers.
It disclosed on Friday that interest and other income last year surged by 275 percent to P15.8 billion.
Management’s view
“Our business delivered healthy growth in 2025 despite a challenging environment, underscoring the strength of our portfolio and execution,” said ALI president and CEO Anna Ma. Margarita Bautista-Dy.
“As we enter 2026, we focus on benchmark residential launches that emphasize quality and long-term value. 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.
Analyst's view
Ayala Land shares were modestly higher despite the profit surge, gaining 1.7 percent to P21.05 after the noontime break.
Nicky Franco, Abacus Securities head of research, said investors remain cautious on the builder’s prospects this year.
“Market sees through non-recurring gains; also residential reservation sales looked weak,” Franco explained.
Multi-year excess inventory, especially in the mid-market segment, is also adding pressure across the country's residential property sector.
Development holds steady
Property development revenues reached P113.9 billion. Within the segment, office and estate lots for sale revenues jumped 25 percent to P22.5 billion, helping offset mixed residential demand.
Sales reservations, a future revenue indicator, were “steady” at P142.3 billion.
Leasing drives recurring growth
Leasing and hospitality revenues increased 7 percent to P48.7 billion. Shopping center revenues rose 5 percent to P24.2 billion, while office leasing climbed 5 percent to P12.2 billion.
Hospitality revenues improved 9 percent to P10.6 billion.
The stronger contribution from recurring segments helped reinforce earnings quality.
Capital expenditures totaled P92.9 billion, allocated across development and leasing expansion.
Ayala Land declares dividends
On Friday, Ayala Land said its board approved cash dividends totaling P0.3513 per common share for the first half of 2026, consisting of a regular dividend of P0.3194 and a special dividend of P0.0319.
The record date is March 6, 2026, with payment set for March 19, 2026.
—Edited by Miguel R. Camus
