Ayala Land (ALI) Q1 2026 earnings summary

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, a 23% decline due to headwinds in property development, partially offset by strong leasing and hospitality growth.

• CapEx reached PHP 23 billion, with a significant increase in leasing and hospitality investments, reflecting a strategic pivot to recurring income streams.

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

Financial highlights

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

• Leasing and hospitality revenues grew 9% year-over-year, with hospitality up 30% and industrial real estate up 23%.

• Total expenses decreased by 12% year-over-year, driven by lower real estate costs, but general administrative expenses increased.

• EBIT margin was stable at 35%; net profit margin was 14.3%, down from 20.6% in the prior year.

• Residential sales take-up was PHP 24.4 billion, down 22% year-over-year but steady quarter-on-quarter.

Outlook and guidance

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

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

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

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

• New residential launches are under review, with possible horizontal launches in H2 2026 depending on market clarity.