Ayala Land (ALI) Q2 2025 earnings summary

Executive summary

• Net income for the first half of 2025 reached PHP 14.2 billion, up 8% year-on-year, driven by a diversified portfolio and resilient leasing and hospitality operations, despite sector headwinds and the sale of AirSWIFT in late 2024.

• Consolidated revenues were PHP 83.1 billion, with steady property development and record-high leasing and hospitality revenues, offset by lower service revenues.

• Excluding AirSWIFT's impact, revenues were flat year-on-year and net income would have grown 9%.

• Capital expenditures totaled PHP 40.2 billion, focused on property development, leasing, hospitality, and estates.

Financial highlights

• EBIT margin improved to 37%, up from 32% in 1H 2024, driven by a favorable sales mix and higher-margin segments.

• Total expenses declined 5% to PHP 61.7 billion, mainly due to lower real estate costs.

• Interest expense and other charges rose 27% to PHP 9.5 billion due to front-loaded AR sales at a 6% discount rate.

• Income before tax grew 9% to PHP 21.3 billion.

• Net income attributable to equity holders increased 8% to PHP 14.2 billion.

Outlook and guidance

• Expect stronger bookings and revenue recognition in coming periods, supported by improving sales indicators and project completions.

• Second half launches to be more diversified: 2/3 premium, 1/3 core; 2/3 horizontal, 1/3 vertical.

• Anticipate opening 115,000 sq m of new GLA and adding nearly 600 hotel rooms, enhancing recurring income streams.

• Capital expenditure budget for 2025 is PHP 95 billion, with PHP 40.2 billion disbursed as of June 30, 2025.

• Performance is expected to remain aligned with the country's economic standing; interest rate fluctuations may impact the real estate industry.