Ayala Land, Inc.

Ayala Land reported first-quarter 2026 revenue of PHP 37.5 billion and net income of PHP 5.4 billion, down 14% and 23% year over year, respectively. Property development revenue was PHP 20.3 billion, down 27%, with residential revenue at PHP 17.4 billion, also down 22% in presales terms and 27% in revenue terms. Leasing and hospitality revenue grew 9% year over year, or 12% like-for-like excluding the Alabang Town Center sale; shopping centers rose 2% to PHP 5.8 billion, offices were flat at PHP 3.0 billion, hospitality rose 30% to PHP 3.4 billion, and industrial leasing rose 23% to PHP 0.4 billion. EBITDA margin was stable at 35%, GAE ratio was 7%, capex was PHP 23 billion, and net gearing was 0.81:1. For the full year, management said it recalibrated capex to approximately PHP 50 billion from the earlier PHP 70 billion to PHP 80 billion range, expects minimal incremental debt, and is still targeting additional mall and office GLA additions through 2026.

Meean Dy framed 2026 as a deliberate year of capital discipline, balance-sheet strength, and a bigger push into leasing and hospitality. She said the Middle East conflict and softer macro conditions are pressuring property development, so the company is pacing residential launches and focusing on selected opportunities in the second half. Her tone was cautious but constructive, emphasizing that Ayala Land is becoming a more balanced and resilient business with a larger recurring-income base.

Jed Quimpo highlighted that Q1 revenue was PHP 37.5 billion and net income was PHP 5.4 billion, with the decline driven mainly by weaker property development bookings. He pointed to PHP 23 billion of capex in the quarter, stable borrowing costs at 5.5%, over 80% of debt contracted long-term, PHP 15 billion of the PHP 25 billion 2026 maturities already refinanced, and cash and cash equivalents at PHP 21 billion. He also said net gearing stayed at 0.81:1, the weighted average debt maturity was 4.1 years, and management expects only minimal incremental debt for 2026 as operations and portfolio-management proceeds fund spending.

Analysts focused heavily on residential softness, asking whether the decline was due to cancellations or weaker bookings; management said the main driver was lower new bookings and that cancellations were less than 8% of revenue impact. They also asked about Laurean and Katipunan, and management clarified that Katipunan was canceled, Laurean is paused, and Laurean sales are still included in Q1 take-up, with buyer options to stay, move to another Ayala Land product, or request refunds. Other questions covered mall sales versus revenue growth, office revenue dips, and the effect of higher rates; management said mall revenue lags sales because of fixed-rent structures, office softness was partly due to a 6,000-square-meter Teleperformance contract ending, and higher rates tend to hit core buyers more than premium buyers.