Ayala Land Inc. said it will reduce its capital spending this year to P50 billion, down by more than a third from its earlier plan of P70 billion to P80 billion, as earnings declined.
Company president and CEO Anna Ma. Margarita B. Dy said the firm is reviewing its project launches and has already canceled and paused some developments, including Avida Katipunan Heights in Quezon City and Laurean Residences in Makati. She said these projects were in good locations but had not yet started construction, allowing the company to act early and limit disruption.
The company plans to prioritize projects scheduled for completion this year and next, along with malls opening within the same period, while reassessing new opportunities when market conditions improve.
Ayala Land reported a 23 percent drop in net income for the first quarter to P5.36 billion, from P6.94 billion a year earlier, mainly due to weaker residential sales. Residential pre-sales fell 22 percent, while revenues dropped 27 percent to P20.34 billion, reflecting softer demand and economic uncertainty.
Total revenues declined 14 percent to P37.84 billion due to lower bookings across residential, commercial, and industrial segments. However, leasing and hospitality revenues rose 9 percent to P12.59 billion, supported by better occupancy and newly opened or upgraded properties.
Mall revenues slightly increased to P5.82 billion, helped by improved foot traffic and renovations of key sites such as TriNoma and Ayala Center Cebu, as well as the opening of Ayala Malls Arca South in Taguig.
The hospitality business posted a 30 percent growth to P3.4 billion, driven by new capacity and improved performance of hotels and resorts. Office leasing income remained steady at P3 billion, with occupancy levels staying above industry averages.
Despite the slowdown, Ayala Land said it still has about P130 billion worth of inventory to sell and expects to deliver around 13,000 residential units across 40 projects.
The company is also expanding its recurring income assets, planning to add more mall and office space and reopen the five-star Mandarin Hotel. Capital spending in the first quarter reached P23 billion, with higher investments in leasing assets.
