AYALA Land Inc. (ALI) on Thursday reported a 21.74-percent decline in net income for the first quarter to P5.4 billion as lower property sales offset continued growth in its leasing and hospitality businesses.
In a disclosure, the company said revenues for the period fell 14 percent to P37.5 billion from P43.6 billion a year earlier.
Property development revenues also dropped 27 percent to P20.3 billion from P27.8 billion, reflecting softer residential sales activity across its portfolio.
Sales reservations likewise declined 22 percent to P28.2 billion, or an average of P9.4 billion per month over the quarter.
Despite the softer earnings, ALI said residential sales reached P24.4 billion, slightly higher than the P22 billion recorded in the same period last year and flat compared with the previous quarter, thanks to steady demand across its premium, core, and estate lot offerings.
ALI President and CEO Anna Ma. Margarita Bautista-Dy told an analysts’ briefing that the decline in earnings was largely driven by slower property sales take-up in the first quarter, rather than any slowdown in project completion.
The softness reflected weaker absorption rather than execution issues, the company said, adding that visibility for the rest of the year remained uncertain amid ongoing market disruptions.
“We’ll need the next quarter to see how things will pan out with this disruption that we’re facing ahead of us,” Bautista-Dy said.
Leasing and hospitality backstopped earnings in the first three months, with revenues rising nine percent year on year to P12.6 billion from P11.6 billion, driven by improved occupancy, higher tenant sales, and contributions from newly opened and redeveloped assets.
Shopping center revenues edged up to P5.8 billion from P5.7 billion, backed by stronger mall traffic and the repositioning of flagship malls, such as TriNoma and Ayala Center Cebu, and the opening of Ayala Malls Arca South.
Hospitality revenues rose 30 percent to P3.4 billion from P2.6 billion in the same quarter in 2024, boosted by additional room capacity from New World Makati Hotel and improved performance of renovated Seda and Holiday Inn properties and Lagen Island Resort in El Nido.
Office leasing revenues were relatively steady at P3.0 billion from P2.9 billion a year ago, while industrial estate revenues increased 23 percent to P439 million on higher occupancy in warehousing and cold storage facilities.
“Our leasing platform is delivering steady growth and providing greater stability to the business,” Bautista-Dy said.
ALI said it intended to continue expanding its recurring income base, with plans to deliver over 270,000 square meters of new mall and office space alongside sustained development of its hotel portfolio.
Capital expenditures reached P23 billion in the first quarter, up 11 percent from the previous year, with leasing-related spending rising 53 percent to P6.1 billion.
The company also maintained a solid balance sheet, with a net gearing ratio of 0.81 times and interest coverage of 4.6 times.
It had earlier declared P5 billion in dividends alongside a renewed P10-billion share buyback program.
Ayala Land shares on Thursday were down P0.66, or 4.19 percent, closing at P15.10 each, amid a 1.26-percent drop for the benchmark Philippine Stock Exchange index.
