Ayala Land (ALI) Q2 2026 earnings summary

Executive summary

• Total revenues for H1 2026 reached PHP 75 billion, down 10% year-on-year, with net income at PHP 11.5 billion, down 19% year-on-year, but stable sequentially from Q1 2026.

• Leasing and hospitality segments showed resilience and grew 9% year-on-year, offsetting weaker property development, which fell 22% due to macro headwinds and the Middle East conflict.

• CapEx for H1 2026 was PHP 39.5 billion, down 2% year-on-year, with a focus on leasing assets, which comprised 34% of total CapEx.

• Inventory levels improved to 15 months, with no new launches in Q2; focus remains on working down inventory and targeted launches in H2.

• Net proceeds from the sale of 100 million AREIT shares (Php 4.18 billion) were fully disbursed by June 30, 2026, to major real estate projects, with all disbursements verified and found consistent with the reinvestment plan by external auditors.

Financial highlights

• Property development revenues at PHP 41 billion, down 22% year-on-year; residential revenues for H1 at PHP 35.3 billion, down 15% year-on-year.

• Commercial leasing revenues rose 9% to PHP 25.2 billion; shopping center revenues up 4% (9% excluding Alabang Town Center sale).

• Hospitality revenues grew 28% to PHP 6.3 billion; industrial real estate up 15% to PHP 0.9 billion.

• Net income for Q2 2026 was PHP 6.1 billion, up 13% sequentially.

• Interest and other income improved 32% to PHP 2.3 billion; total expenses down 7% year-on-year.

Outlook and guidance

• CapEx guidance for FY 2026 set at PHP 60 billion, up from PHP 50 billion in Q1 but below initial PHP 70–80 billion.

• Focus for H2 is on delivering 13,000 residential units, opening 200,000 sq m of new mall GLA, and completing 30,000 sq m of offices.

• PHP 5 billion in new horizontal launches planned for H2 2026; more launches expected in 2027.

• Leasing investments are prioritized, with ongoing expansion in malls, offices, and hospitality; major mall and hotel openings remain on track for 2026.

• Management expects H2 performance to be similar to H1, with continued inventory normalization.