First quarter net income fell 22 percent to P5.4 billion from P6.9 billion a year ago, while revenues declined 14 percent to P37.5 billion from P43.6 billion.
“The current environment requires a more deliberate approach to how we deploy capital and manage our pipeline,” said Anna Ma. Margarita Bautista-Dy, Ayala Land president and CEO.
“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,” Dy added.
Ayala Land kept its finances in good shape, with manageable debt and enough earnings to cover its interest costs, even as it returned P5 billion in dividends and approved a new P10 billion share buyback.
Property development weighs on results
During the quarter, roperty development revenues dropped 27 percent to P20.3 billion from P27.8 billion, reversing last year’s expansion and dragging overall performance.
This marks a clear shift from 2025, when development was a major growth driver.
Meanwhile, Ayala Land remains committed to delivering 13,000 residential units across 40 projects to buyers for the rest of the year.
Leasing continues to grow
Leasing and hospitality revenues during the quarter rose 9 percent to P12.6 billion from P11.6 billion, helping cushion the decline.
Growth was supported by higher mall traffic, improved tenant sales, and contributions from new and redeveloped assets.
Hospitality stood out, with revenues climbing 30 percent to P3.4 billion from P2.6 billion on stronger occupancy and new capacity.
“Our leasing platform is delivering steady growth and providing greater stability to the business,” Dy said. “These results reflect the strength of our diversified portfolio and the continued ramp-up of assets we have invested in over the past few years.”
Capital shift toward recurring income
Industrial real estate revenues increased 23 percent to P439 million.
Capital expenditures rose 11 percent to P23 billion, with leasing investments jumping 53 percent as the company expands its recurring income base.
—Edited by Miguel R. Camus
