MANILA, Philippines — Ayala Land Inc. reported steady financial performance for the third quarter of 2026, even as softer residential sales dragged down its nine-month figures.
For the July-to-September period, the country’s largest property developer recorded an attributable net income of ₱6 billion on revenues of ₱34.2 billion, maintaining a stable quarter-on-quarter performance. On an annual basis, however, profit and revenues dipped from ₱7.21 billion and ₱38.76 billion, respectively, reported in the third quarter of 2025.
For the first nine months of 2026, total revenues reached ₱109.2 billion, marking a 10 percent decline from ₱121.83 billion during the same period last year. Net income for the nine-month stretch fell to ₱17.5 billion from ₱21.4 billion.
The overall dip stemmed primarily from the property development sector, where revenues dropped 24 percent to ₱57.6 billion from ₱75.9 billion a year ago. Total sales reservations declined 30 percent to ₱77.7 billion, averaging ₱8.6 billion monthly, driven largely by sustained demand for premium residential lots and commercial properties.
To stimulate buyer interest, the firm introduced new horizontal developments, including subsequent phases of Sereneo in Nuvali and South Palm Grove in Lipa, Batangas.
Despite softening housing sales, robust growth in recurring income segments helped buffer the financial impact. Combined revenues from leasing and hospitality climbed 8 percent to ₱37.8 billion during the nine-month period, propelled by higher occupancy rates and enhanced operational performance across the portfolio. Earnings before interest, taxes, depreciation, and amortization (EBITDA) from recurring operations expanded to account for 55 percent of total EBITDA, up from 44 percent previously.
Shopping center revenues grew 10 percent to P18.2 billion—excluding asset sales from the previous year—boosted by higher merchant sales and renovated flagship malls. Office leasing generated ₱9.4 billion while maintaining vacancy rates below industry averages.
Meanwhile, hospitality revenues surged 20 percent to ₱8.9 billion following resort upgrades, and logistics and warehouse revenues increased 12 percent to ₱1.3 billion.
In response to market conditions, capital expenditures decreased by 19 percent year-on-year to ₱53.1 billion. Aligning with its diversification strategy, Ayala Land channeled 36 percent of its total capital outlay into leasing operations, compared to 28 percent in 2025. Furthermore, the company trimmed its total debt by ₱8.4 billion in the third quarter using excess cash, lowering its net gearing ratio to 0.78 times while keeping interest coverage at 4.3 times.
“Despite headwinds, Ayala Land achieved steady income in the third quarter of 2026. Our continuous goal is to build a more resilient ALI with more diversified revenue streams, focusing on our recurring income base.”