Ayala Land Inc. reported double-digit declines in both its net income and revenues for the first nine months of the year, dragged down by softer sales across its residential and office development segments. The property developer said Thursday its January–September net income fell 18 percent to P17.5 billion from P21.4 billion in the same period last year, while revenues dropped a narrower 10 percent to P109.2 billion from P121.8 billion. Performance held up better in the third quarter alone, with income edging down just 1 percent to P6 billion and revenues slipping 9 percent to P34.2 billion, signaling relative stability in the latest quarter despite broader market challenges.
The main pressure came from property development sales, where residential revenues dropped 24 percent to P57.6 billion and office-for-sale sales also fell 24 percent to P2.3 billion. Still, total sales reservations reached P77.7 billion over the nine months, averaging P8.6 billion monthly, supported by strong take-up of premium residential projects and commercial and industrial lot offerings. New launches including follow-up phases of Sereneo in Nuvali and South Palm Grove in Lipa, Batangas, drew solid buyer interest, showing that well-positioned projects continue to attract demand.
Helping offset the slowdown in development sales, the company’s leasing and hospitality businesses grew 8 percent to P37.8 billion, with shopping mall revenues rising 4 percent to P18.2 billion. Ayala Land is directing more resources toward these steady, recurring income streams: capital expenditures for the period stood at P53.1 billion, down 19 percent year-on-year, with the share of leasing-related investment rising to 36 percent of total capex from 28 percent a year ago. The company also strengthened its financial position, trimming total debt by P8.4 billion and lowering its net gearing ratio to 0.78 times, alongside a healthy interest coverage ratio of 4.3 times.
“Despite headwinds, Ayala Land achieved steady income in the third quarter of 2026. Our continuous goal is to build a more resilient ALI with more diversified revenue streams, focusing on our recurring income base,” said Anna Ma. Margarita Bautista-Dy, ALI president and CEO. She added the company remains focused on growing its leasing portfolio, maintaining discipline in residential development, strengthening its balance sheet, and preserving returns. The results underscore ALI’s strategic shift: while near-term development sales face challenges, the company is pivoting toward more predictable earnings from rentals and hospitality to stabilize performance and support long-term growth.
