Ayala Land (ALI) investor relations material

Executive summary

• Total revenue for Q1 2026 was PHP 37.5 billion, down 14% year-over-year, with net income at PHP 5.4 billion, down 23% due to headwinds in property development, partially offset by strong leasing and hospitality performance.

• Strategic pivot to leasing and hospitality is yielding results, with these segments now accounting for 34% of revenues, up from 23% in 2019.

• CapEx for the quarter reached PHP 23 billion, with a notable 53% increase in leasing and hospitality investments.

• No new project launches occurred during the quarter; residential sales and reservation sales both declined year-over-year.

• Balance sheet remains robust, with net gearing at 0.81:1 and over PHP 1 trillion in assets.

Financial highlights

• Property development revenue fell 27% year-over-year to PHP 20.3 billion, mainly due to weaker residential sales.

• Leasing and hospitality revenue grew 9% year-over-year (hospitality up 30%, industrial up 23%).

• Shopping centers revenue rose 2%, office revenue was flat, and property management/retail electricity sales to third parties increased 21%.

• Total expenses decreased 12% year-over-year to PHP 29.2 billion, driven by lower real estate expenses.

• EBIT margin stable at 35%; GAE ratio at 7%, slightly up year-over-year.

Outlook and guidance

• CapEx guidance for 2026 recalibrated to PHP 50 billion from PHP 70–80 billion, prioritizing projects near completion and new mall openings.

• Minimal incremental debt targeted for 2026, with CapEx largely funded by internal cash.

• Residential launches to be reviewed in H2 2026, with focus on horizontal projects as market conditions clarify.

• Leasing and hospitality expected to continue double-digit growth and become majority of EBITDA over the medium term.

• Expansion pipelines in malls, offices, and hospitality are on track for completion by 2030.