Ayala Land profit jumps 39% as hotel, commercial lot sales surge
Anna Ma. Margarita Bautista-Dy and Jose Eduardo A. Quimpo II
The Philippines’ largest property developer reported a 39 percent surge in profit as recovery in commercial lot sales and its expanding hotel and mall portfolio offset the cooling residential market.
In a disclosure to the Philippine Stock Exchange on Friday, Feb. 20, Ayala Land Inc. (ALI) reported that its net income climbed to ₱39.1 billion in January to December 2025 from ₱28.2 billion the previous year.
ALI’s consolidated revenues rose five percent to a record ₱190.2 billion, while core net income, which strips out one-time items, grew eight percent to ₱30.6 billion.
Anna Ma. Margarita Bautista-Dy, ALI chief executive officer, said the company’s performance was driven by the strength of its portfolio in a “challenging environment.”
“As we enter 2026, we focus on benchmark residential launches that emphasize quality and long-term value. Our Leasing portfolio continues to expand with a banner year of more than 250,000 sqm of leasable space coming online in our Estates,” Bautista-Dy said.
Property development, ALI’s largest revenue contributor, generated ₱113.9 billion despite what the company described as market sentiment headwinds. The segment was propped up by demand for office-for-sale units and estate lots in prime locations such as Arca South in Taguig and Circuit Makati. Sales reservations, a key indicator of future revenue, remained steady at ₱142.3 billion for the year.
The leasing and hospitality division posted a revenue rise of seven percent to ₱48.7 billion. Shopping center income grew five percent to ₱24.2 billion, aided by higher merchant sales and occupancy rates across its Ayala Malls chain.
The hospitality business was a particular bright spot, with revenues increasing nine percent to ₱10.6 billion, bolstered by the acquisition of the New World Makati Hotel in the second half of the year and the completion of renovations at several of its Seda-branded hotels and luxury resorts.
ALI deployed ₱92.9 billion in capital expenditures during the year, with nearly 40 percent allocated to property development and the remainder split between leasing expansion and estate infrastructure.
The developer recently added 77,000 square meters of new commercial space, including expansions at AyalaMalls Vermosa and new retail hubs in Cavite and Bonifacio Global City.