Ayala Land achieves 1H25 Net Income of Php14.2Bn, 8% higher year-on-year

Ayala Land, Inc. (ALI) posted P14.2 billion net income in the first semester of 2025, an 8% growth from last year anchored on the strength of its diversified portfolio. The Company’s consolidated revenues reached P83.1 billion on the back of steady Property Development revenues and solid Leasing and Hospitality operations.

PROPERTY DEVELOPMENT

First-half Property Development revenues reached P52.3 billion, driven by strong Commercial and Industrial (C&I) Lot revenues and resilient bookings from the Premium Residential segment. Revenues from the Residential business stood at P41.3 billion mainly from higher recognized revenues of Ayala Land Premier (ALP) and Alveo projects. Moreover, C&I revenues jumped 42% to P9.1 billion from sales of lots in Arca South in Taguig City, Circuit Makati, and Arillo, our emerging Leisure estate in Batangas. In addition, revenues from Offices-for-Sale increased 5% to P1.9 billion owing to new sales bookings.

Total Sales Reservations of the Property Development business totaled P73.7 billion equivalent to P12.3 billion worth of monthly sales for the first six months of 2025, a 4% improvement compared to the average monthly sales for the full year of 2024 of P11.8 billion. Sales during the period were led by the Premium Residential segment which accounted for P40.6 billion, as well as demand for C&I lots, which expanded7% to P8.0 billion. Meanwhile, the Core Residential business saw a notable growth in sales take-up in the 2nd quarter, generating sales of P14.6 billion, up 11% year-on-year and 39% quarter-on-quarter, bringing first-half sales to P25.1 billion.

Ayala Land launched P42.9 billion worth of property development projects during the period headlined by ALP’s Laurean Residences at the heart of the Makati Central Business District, commercial lots at Areza in Lipa City, Batangas and industrial lots for sale at Cavite Technopark.

LEASING AND HOSPITALITY

The Company’s Leasing and Hospitality Group achieved its highest first-half revenues in its history, even with ongoing reinvention works for its flagship malls and hospitality assets. Revenues for the period reached P23.2 billion, a 5% improvement from the previous year. With increasing contributions of core and new malls, Shopping Center revenues increased 5% to P11.6 billion. Similarly, Office Leasing revenues grew by 5% to P5.9 billion, buoyed by a solid single-digit vacancy rate across the portfolio. Moreover, Hospitality revenues reached P4.9 billion from healthy occupancy despite ongoing renovations to close to 900 rooms during the first half of 2025. The Industrial Real Estate business composed of a growing portfolio of dry warehouses, cold storage facilities and industrial land generated revenues of P762 million, up 60% from last year owing to industrial land owned by AREIT and incremental revenues from new facilities.

“Our sales momentum is improving, and we are preparing for a busy second half with P57 billion in new property development launches, and the completion of reinvention works of malls and hotels,” said ALI President and CEO Ms. Anna Ma. Margarita Bautista-Dy. “These initiatives will support our growth aspirations for 2025 and beyond.” she added.

CAPEX, BALANCE SHEET AND SHAREHOLDER VALUE 

Capital expenditures for the first semester of 2025 reached P40.2 billion. 42% was spent on the build-out of residential projects, 25% for the completion of leasing and hospitality assets, 23% for priming and development of mixed-use estates, and 10% for continuing payments for land acquisition commitments.

The Company ended the period with a healthy net gearing ratio of 0.76:1 and interest coverage ratio of 5x.

Ayala Land remains committed to delivering shareholder value, notwithstanding uncertainties in the market. As of end-June 2025, a combined P10.1 billion worth of capital was returned to shareholders, P4.2 billion coming from first-half cash dividends and P5.9 billion from its active share buyback program. This is equivalent to 36% of the Company’s full-year 2024 net earnings.