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.

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

• CapEx investment totaled PHP 92.9 billion, up 10%, with a significant increase in leasing and hospitality assets.

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

• Focused on capital efficiency, active portfolio management, and a strategic shift toward recurring income from leasing.

Financial highlights

• Property development revenues stable at PHP 113.9 billion (+1%), with estate lots and offices for sale offsetting lower residential revenues.

• Leasing and hospitality revenues grew 7% to PHP 48.7 billion, driven by broad-based growth despite ongoing renovations.

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

• Interest and other income surged, mainly from the PHP 11 billion gain on the sale of Alabang Commercial Corporation and a 275% jump to PHP 15.8 billion from asset sales.

• 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 year-over-year).

Outlook and guidance

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

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

• Residential sales expected to remain stable, with PHP 30 billion in new launches planned for 2026.

• CapEx for 2026 projected at PHP 70-80 billion, with a higher proportion allocated to leasing.

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