Ayala Corp., the oldest conglomerate in the country, is deploying ₱5 billion to aggressive equity purchases of its primary real estate subsidiary, Ayala Land Inc., seeking to stabilize the property giant following a steep market selloff.

The Zobel-led parent company informed the Philippine Stock Exchange that it has reallocated 40 percent of its capital expenditure investment budget to facilitate the additional accumulation of Ayala Land common shares. This ₱5 billion capital deployment is an extension of Ayala’s broader ₱20 billion share buyback program, which was initially authorized by its board of directors on Sept. 18, 2025, to defend the valuations of the conglomerate and its publicly listed units.

Ayala has already moved quickly to exploit the discounted equity prices. The conglomerate utilized ₱599.5 million of the designated fund in June alone, according to Ginaflor Oris, Ayala head of investor relations. Market disclosures showed that Ayala acquired 35 million common shares on June 17 at an average price of ₱13.07 per share, representing a ₱457.45 million deployment. It followed that transaction with a June 24 purchase of 10 million shares at ₱14.14 apiece, totaling ₱141.4 million.

The aggressive corporate intervention has provided a temporary floor for the real estate developer. Ayala Land shares closed at ₱15.44 in trading, marking a 2.66 percent bounce from the prior session.

Despite the recent rebound, the stock remains deeply depressed after panic selling gripped investors. The rout was triggered by structural anxieties over Ayala Land’s residential development pipeline after the developer abruptly shelved two high-rise residential towers.

Market analysts remain divided on the severity of the developer’s fiscal strains, though some view the selloff as overdone. Richard Laneda, a senior research manager at COL Financial Group Inc., maintained a buy rating on Ayala Land with a fair value target of ₱33.70 per share—more than double its current trading level.

Laneda noted that while Ayala Land’s absolute debt load and leverage ratios look elevated relative to its domestic peers, the firm faces no immediate solvency or liquidity risks.

Meanwhile, institutional brokerage Abacus Securities Corp. warned that the developer faces indexing pressures that could catalyze further capital flight.

According to Abacus, Ayala Land must sustain its share price above the critical ₱14 threshold to maintain its position in the MSCI Philippines Standard Index. Falling below this level would trigger a breach of the minimum market capitalization requirement, forcing global tracker funds to execute mandatory liquidations of the stock.

The corporate defense strategy comes as Ayala Land aggressively retrenches its operations to insulate its balance sheet from macroeconomic shocks. The developer slashed its full-year capital expenditure forecast by roughly a third, downgrading its budget to ₱50 billion from the initial guidance of ₱70 billion to ₱80 billion provided in February, prior to the outbreak of geopolitical conflict in Iran.

During a briefing with financial analysts, Ayala Land President and Chief Executive Officer Anna Ma. Margarita Bautista-Dy said the company recalibrated its spending to prioritize near-term revenue generation.

Cash will be directed almost exclusively toward residential developments nearing imminent handover and retail malls scheduled to open through next year. The company is actively freezing its landbanking activities to optimize cash, shifting its operational focus to developing its existing 800-hectare estate portfolio.

The company has also walked back its aggressive project pipeline. While Ayala Land entered the year targeting ₱30 billion in new project launches, Bautista-Dy said the operating environment requires extreme caution. The company canceled its Avida-Katipunan Heights project and paused development on Laurean Residences, citing cost uncertainties and execution risks.

Ayala Land plans to lean heavily on its ₱130 billion worth of existing, unmonetized inventory to preserve its dominant position in the Philippine property market.

The company intends to deliver 13,000 residential units across 40 projects this year, using the cash proceeds to shore up its balance sheet balance, fund prioritized infrastructure, and protect shareholder distributions.