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Ayala Land sees stabilization efforts bearing fruit as Q2 profit grows
Ayala Land sees stabilization efforts bearing fruit as Q2 profit grows
Real estate giant Ayala Land Inc. (ALI) is seeing its efforts to stabilize its businesses beginning to bear fruit in the second quarter of the year despite persistent challenges hounding the property sector.
“We are building a more resilient Ayala Land through disciplined capital allocation, a growing recurring income base, and a strong balance sheet,” said ALI President and Chief Executive Officer (CEO) Anna Ma. Margarita Bautista-Dy in a media briefing on Monday, Aug. 10.
She added, “Supported by our integrated estate model and diversified platforms, we are confident in Ayala Land’s ability to deliver sustainable growth and remain well positioned for the opportunities ahead.”
ALI delivered second-quarter 2026 revenues of ₱37.5 billion and net income of ₱6.1 billion, a sequential growth of 13 percent versus the prior quarter despite challenges in the operating environment.
This performance brought ALI’s year-to-date 2026 revenues and net profit to ₱75 billion and ₱11.5 billion, still lower by 10 percent and 19 percent, respectively.
“To stabilize the business, we needed to make sure that we manage our debt levels, we make sure that we have a keen eye on our collections, that we grow our revenues and our yields at least on a quarter-on-quarter basis, and we work our inventory levels down,” Bautista-Dy said.
She noted, “I think we’ve accomplished that for the second quarter… there is on the bottom line a 13-percent increase between the second quarter and the first quarter. We’ve managed to bring down our inventory levels… We’re now at 15 months, which is practically our pre-pandemic levels.”
For capital expenditures (capex), Bautista-Dy said, “we’re confident to bring it back up to about ₱60 billion, not quite what we thought we would do for the year, but higher than the guidance that we gave after the first quarter. A reflection of the confidence that we have.”
ALI’s property development business achieved ₱41 billion in revenues for the first half of 2026, buoyed by second-quarter revenues of ₱20.6 billion, stable compared to the first quarter of the year.
Guided by disciplined inventory management, total sales reservations for the six-month period stood at ₱53.5 billion.
ALI is on track for deliveries across 40 projects, with close to 6,000 residential units turned over to date. Residential inventory improved to 15 months from the first quarter’s 18 months.
Leasing and hospitality businesses continued their growth trajectory, with first-half revenues reaching ₱25.2 billion, nine percent higher than the previous year, lifted by positive contributions across each asset class.
Revenues from shopping centers totaled ₱12 billion, up four percent year-on-year, anchored on higher occupancy, increasing foot traffic, growing merchant sales and early returns from the completion of reinvention works across flagship malls.
Hospitality revenues grew 28 percent year-on-year to ₱6.3 billion, lifted by the solid performance of renovated facilities and the contribution of New World Makati Hotel to the topline.
In addition, the offices segment generated revenues of ₱6 billion on the back of healthy above-industry occupancy rates and contracted escalations from existing leases.
Moreover, industrial real estate revenues saw 15-percent growth to ₱879 million, lifted by solid occupancy across both dry warehouse and cold storage facilities.