AYALA Land Inc. (ALI) posted a 19-percent decline in first-half net income to P11.5 billion, from P14.2 billion a year earlier, as weaker property development revenues offset continued growth in its leasing and hospitality businesses.
In a disclosure on Monday, the developer said consolidated revenues decreased 10 percent to P75 billion from P83.1 billion.
The decline came despite a stronger second quarter, with the company reporting P6.1 billion in net income, up 13 percent from the previous quarter, on revenues of P37.5 billion.
Property development revenues dropped to P41 billion in the first half from P52.3 billion a year earlier.
The company said it recorded P53.5 billion in sales reservations during the six-month period and also noted that residential inventory had improved to 15 months from 18 months in the first quarter.
Ayala Land claimed that it was on track to deliver 40 projects, with nearly 6,000 residential units turned over to date.
Meanwhile, leasing and hospitality revenues increased 9 percent year on year to P25.2 billion from P23.2 billion in the first half of 2025.
Shopping center revenues rose 4 percent to P12 billion, while hospitality revenues jumped 28 percent to P6.3 billion.
Office revenues reached P6 billion, supported by occupancy levels that remained above industry averages and contractual lease escalations.
Industrial real estate revenues also increased 15 percent to P879 million, driven by occupancy across dry warehouse and cold storage facilities.
Ayala Land also announced a proposed P20-billion infusion into AREIT Inc., involving four malls and three hotels.
The infusion is expected to increase AREIT’s assets under management to P179 billion, further diversifying its portfolio across malls, offices, hotels and industrial land.
Ayala Land said proceeds generated from the AREIT infusion would be redeployed to fund its pipeline of leasing and hospitality assets, adding that it would retain majority ownership and full consolidation of the infused properties.
The company’s capital expenditures reached P39.5 billion in the first half, down 2 percent from P40.2 billion a year earlier. Spending on the leasing businesses, however, increased 17 percent to P13.2 billion.
The company ended the period with a net gearing ratio of 0.8 times and an interest coverage ratio of 4.4 times.
“We are building a more resilient Ayala Land through disciplined capital allocation, a growing recurring income base, and a strong balance sheet,” President and CEO Anna Ma. Margarita Bautista-Dy said.
“Supported by our integrated estate model and diversified platforms, we are confident in Ayala Land’s ability to deliver sustainable growth and remain well positioned for the opportunities ahead,” she added.
On Monday, Ayala Land shares dropped P0.26, or 1.60 percent, to close at P16.00 each.
NAZYLEN JOY MABANGLO
