Ayala Land (ALI) Q4 2025 earnings summary

Executive summary

• Total revenues reached PHP 190.2 billion, up 5% year-over-year, with net income at PHP 39.1 billion, up 39% year-over-year, driven by gains from asset sales and improved operational performance.

• Core revenues (excluding one-time gains) were PHP 178.9 billion, just 1% below prior year, while core net income rose 8% to PHP 30.6 billion.

• Broad-based growth in leasing and hospitality offset declines in residential and services segments.

• Capital efficiency improved, with similar residential sales as prior year despite 40% fewer launches, and a focus on extracting value from existing inventory.

• Active portfolio management included the sale of Alabang Town Center at a 3% cap rate, recycling capital into higher-yielding assets and supporting shareholder returns.

Financial highlights

• Property development revenues stable at PHP 113.9 billion (+1% YoY), with estate lots up 21% and offices for sale up 40%.

• Leasing and hospitality revenues rose 7% to PHP 48.7 billion, driven by higher occupancy, lease rates, and new capacity.

• Service revenues declined 34% to PHP 11.8 billion due to lower construction contracts and the sale of airline operations.

• Total expenses decreased 3% to PHP 134.1 billion, with real estate expenses down 7%.

• EBIT margin at 40% (core EBIT margin 36%, up 300 bps YoY).

Outlook and guidance

• 2026 will focus on accelerating leasing growth, with over 200,000 sq m of new retail GLA to open, the largest annual addition in history.

• Expecting 10%-20% room rate uplift from renovated hotels and 15%-20% rent uplift from reinvented malls.

• Residential sales expected to remain stable, with PHP 30 billion in new launches planned and flexibility to scale as market conditions improve.

• Dividend payout maintained at 30% of prior year's net income, with a special dividend from asset sale proceeds, raising payout to 33%.

• Expansion pipelines in malls, offices, hospitality, and industrial segments are set for completion in 2026.