Diversified portfolio continues to drive steady growth
Ayala Land, Inc. (ALI) reported a consolidated net income of ₱14.2 billion for the first half of 2025, marking an 8% increase from the same period last year. This growth was attributed to the continued strength and resilience of ALI’s diversified portfolio, with consolidated revenues reaching ₱83.1 billion.
Solid Performance Across Property Segments
Property Development generated ₱52.3 billion in revenues, supported by strong sales of commercial and industrial lots, as well as sustained demand in the premium residential segment. Residential revenues reached ₱41.3 billion, fueled by higher revenue recognition from Ayala Land Premier and Alveo projects. Commercial and industrial lot sales rose 42% to ₱9.1 billion, driven by transactions in Arca South (Taguig), Circuit Makati, and Arillo in Batangas. Office-for-sale revenues also increased by 5% to ₱1.9 billion due to new bookings.
Total sales reservations for the period reached ₱73.7 billion, translating to a monthly average of ₱12.3 billion—a 4% improvement over 2024’s monthly average. Premium residential projects led the charge with ₱40.6 billion in reservations, while C&I lot demand rose 7% to ₱8 billion. Core residential also saw notable growth in Q2, with ₱14.6 billion in sales—up 11% year-on-year and 39% quarter-on-quarter—bringing the 1H total to ₱25.1 billion.
Ayala Land launched ₱42.9 billion worth of new projects during the first half, including ALP’s Laurean Residences in Makati CBD, commercial lots in Areza (Lipa City), and industrial parcels at Cavite Technopark.
Leasing and Hospitality Reach Record First-Half Revenues
The Leasing and Hospitality segment posted its highest first-half revenues ever, totaling ₱23.2 billion—a 5% increase from the previous year. Shopping center revenues reached ₱11.6 billion, driven by the performance of core and newly opened malls. Office leasing likewise posted a 5% increase to ₱5.9 billion, with the portfolio maintaining a healthy single-digit vacancy rate.
Hospitality revenues hit ₱4.9 billion, with strong occupancy levels despite the temporary closure of nearly 900 rooms due to ongoing renovations. The industrial real estate business grew 60% to ₱762 million, bolstered by AREIT-owned land and new cold storage and warehouse facilities.
“We are seeing positive momentum in sales and are gearing up for an active second half,” said ALI President and CEO Anna Ma. Margarita Bautista-Dy. “With ₱57 billion in new launches and the completion of key reinvention projects for our malls and hotels, we’re positioned to sustain our growth goals for the rest of 2025 and beyond.”
Capital Expenditures and Shareholder Returns
Ayala Land invested ₱40.2 billion in capital expenditures during the first six months of 2025:
- 42% for residential development
- 25% for leasing and hospitality assets
- 23% for mixed-use estate development
- 10% for land acquisition payments
The company ended the period with a net gearing ratio of 0.76:1 and an interest coverage ratio of 5x—indicators of sound financial health.
In terms of shareholder returns, ALI distributed a combined ₱10.1 billion in capital by end-June. This included ₱4.2 billion in cash dividends and ₱5.9 billion via share buybacks, amounting to 36% of its 2024 full-year net income.
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