Premium residential as well as commercial and industrial lot sales continue to fuel the growth of real estate giant Ayala Land, Inc. (ALI) as the middle-income condominium market in Metro Manila continues to be weighed down by weak sentiment, low demand, and excess supply.

Despite headwinds, the firm said its net income grew 10 percent to ₱6.9 billion in the first quarter of 2025 as consolidated revenues improved six percent year-on-year to ₱43.6 billion, driven by resilient property development bookings and healthy leasingoperations.

“As we close the first quarter of 2025, I am pleased to share that Ayala Land remains firmly on track—guided by discipline, resilience, and long-term perspective—even as we navigate today’s complex macroeconomic landscape,” said ALI President and CEO Anna Ma. Margarita Bautista-Dy. 

She added that, “We are energized with what lies ahead and continue to deliver sustainable long-term value for all our stakeholders.”

ALI’s property development revenues expanded by 11 percent to ₱27.8 billion, lifted by contributions across premium residential offerings and commercial and industrial lots for sale. 

Residential revenues reached ₱22.0 billion, three percent more than the previous year, anchored on the resilience of the premium segment. 

Meanwhile, commercial and industrial lot revenues more than doubled to ₱5.7 billion owing to strong sales at Arca South in Taguig City.

Property development reservation sales grew four percent year-on-year to ₱36.2 billion, led by premium residential sales, which rose by percent to ₱20.7 billion, and take-up for commercial and industrial lots, which more than tripled to ₱4.9 billion. 

“The strength of these segments cushioned the contraction in the core residential segment (middle-income) which contributed P10.5 billion to total sales. The Company launched four projects during the quarter worth ₱12.6 billion, all located outside Metro Manila and with 90 percent from the Premium segment,” the firm said.

With reinventions across flagship malls and hospitality assets in full swing, leasing revenues increased by seven percent to ₱11.6 billion on stable occupancy and lease escalation. 

Shopping center revenues grew four percent to ₱5.7 billion on the back of growing contributions of core and emerging malls. Office revenues reached ₱2.9 billion, also four percent higher year-on-year, with lease escalation and sustained better-than-industry occupancy levels. 

In addition, revenues from hotels and resorts expanded 10 percent to ₱2.6 billion, anchored on improving occupancy and room rates, notwithstanding the closure of hotels undergoing renovation.

Moreover, ALI’s emerging Industrial Real Estate portfolio of warehouses, cold storage and industrial land accounted for ₱357 million in revenues, 60 percent more than the first quarter of 2024, driven by AREIT’s industrial land holdings and newly opened cold storage facilities.

First-quarter capital expenditures reached ₱20.6 billion, of which 46 percent was spent on the build out of residential projects, 30 percent to prime and develop infrastructure within its estates, 16 percent on leasing and hospitality assets, and nine percent on continuing land acquisition commitments.