Ayala Land Inc. (ALI), the country’s largest property developer, pushed back against market speculation regarding its liquidity, asserting that its balance sheet remains robust with sufficient capital to refinance upcoming obligations and fund its pivot toward recurring income.

ALI pointed out that its net debt-to-equity ratio is 0.8 times and interest coverage of over four times, indicating healthy leverage and strong capacity to service obligations.

The company’s total debt stood at approximately ₱300 billion, supported by a ₱1 trillion asset base, which is more than three times its debt.

For 2026, ALI’s maturities are ₱25 billion, which is expected to be addressed through available funding channels, including the bond market.

“Behind our operating results is clear discipline: grow earnings, recycle capital intelligently, and keep the balance sheet strong enough to act when opportunities arise,” ALI Chief Finance Officer and Treasurer Jose Eduardo A. Quimpo II said.

He added, “As a result, our balance sheet remains strong. Net gearing stands at 0.78:1, supported by predominantly long-term, fixed-rate debt—providing stability and headroom when opportunities arise.”

Also boosting its cash flow this year, ALI said it is on track to deliver approximately 13,000 residential units, including around ₱124 billion in premium-segment turnover, as it continues to fulfill commitments to buyers while maintaining a strong inventory base to support sustained market leadership.

ALI reaffirmed the strength of its balance sheet and outlined the next phase of its growth strategy during its annual stockholders’ meeting, emphasizing disciplined capital management and a continued shift toward recurring income.

In her report to shareholders, ALI President and CEO Anna Ma. Margarita Bautista-Dy noted that 2025 results were “anchored by the strength of estates, our recurring income platform, and our disciplined capital strategy—the foundations that will drive growth over the next decade.”

The firm continues to actively manage its portfolio as part of its long-term capital strategy.

“Capital recycling has become one of our key levers… we continuously unlock value while retaining exposure to quality income streams,” Quimpo noted.

He added that, “This active portfolio management means we are not passively holding assets; we are constantly optimizing the balance sheet to catalyze returns and maximize value.”

This includes the regular review of assets for reinvestment into higher-return opportunities, supporting both growth and balance sheet strength.

A key pillar of ALI’s strategy is the expansion of its leasing and hospitality portfolio, which provides more stable and predictable income streams.

“A key shift… was the continued expansion of our Leasing and Hospitality businesses—strengthening the recurring income base that stabilizes our earnings across cycles,” said Mariana Zobel de Ayala, Head of Ayala Land’s Leasing and Hospitality business.

This year, ALI is set to add approximately 270,000 square meters of new mall and office space—one of its largest annual expansions—alongside the reopening of the Mandarin Oriental hotel.

Over the next five years, the company plans to grow its leasing footprint by more than one million square meters, supporting a more balanced earnings mix between development and recurring income.

ALI also highlighted sustained strength in its residential segment, driven by disciplined launches and strong demand in key estates.

“We remained disciplined and focused—launching less, but selling well, and allocating investments where demand and returns are strongest,” Dy said.