LISTED real estate developer Ayala Land, Inc. (ALI) posted a 10% increase in its first-quarter (Q1) net income to P6.9 billion from P6.3 billion a year earlier, led by leasing operations and property development revenue.
Consolidated revenue rose by 6% to P43.6 billion from P41 billion, ALI said in a regulatory filing on Tuesday.
Property development revenue increased by 11% to P27.8 billion on contributions from premium residential offerings and commercial and industrial lots for sale.
Residential revenue improved by 3% to P22 billion, led by the resilience of the premium segment, while commercial and industrial lot revenue more than doubled to P5.7 billion due to strong sales at Arca South in Taguig City.
Property development reservation sales rose by 4% to P36.2 billion, as premium residential sales grew by 4% to P20.7 billion, and take-up of commercial and industrial lots more than tripled to P4.9 billion.
The contribution of the core residential segment to total sales declined to P10.5 billion.
ALI launched four projects worth P12.6 billion during the quarter, comprising Ayala Land Premier’s Virendo in Toril, Davao, and sequel phases of Ayala Westgrove Heights and Amaia Scapes General Trias, both in Cavite.
Leasing revenue rose by 7% to P11.6 billion on stable occupancy amid ongoing renovations across malls and hospitality assets.
Shopping center revenue increased by 4% to P5.7 billion, led by growing contributions from core and emerging malls. Office revenue rose by 4% to P2.9 billion on higher lease rates and better-than-industry occupancy levels.
Revenue from hotels and resorts expanded by 10% to P2.6 billion due to improving occupancy and room rates, while revenue from warehouses, cold storage, and industrial land grew by 60% to P357 million.
Capital expenditures during the first quarter reached P20.6 billion, of which 46% went to the build-out of residential projects, 30% to the development of infrastructure within estates, 16% to leasing and hospitality assets, and 9% to continuing land acquisition commitments.
“As we close the first quarter of 2025, I am pleased to share that ALI remains firmly on track — guided by discipline, resilience, and long-term perspective — even as we navigate today’s complex macroeconomic landscape,” ALI President and Chief Executive Officer (CEO) Anna Ma. Margarita Bautista-Dy said.
“We are energized with what lies ahead and continue to deliver sustainable long-term value for all our stakeholders,” she added.
Meanwhile, ALI said in a separate statement that its Ayala Land Leisure Estates unit has signed a land lease agreement with Pangilinan-led Metro Pacific Agro Ventures, Inc. (MPAV), which will develop a greenhouse facility within the Lio Estate in El Nido, Palawan.
The facility, with a 100,000-kilogram capacity, will feature advanced farming technologies, including hydroponics and climate-controlled environments. It will supply vegetable produce to Lio Estate’s hospitality establishments — Seda Lio, Huni, and The El Nido Resorts — as well as locators and the El Nido community.
“This project aligns with our mission to introduce cutting-edge farming techniques across the country. By establishing a greenhouse in Lio Estate, we aim to demonstrate the viability of sustainable agriculture even in remote locations,” MPAV President and CEO Jovy I. Hernandez said.
MPAV is the agriculture unit of Metro Pacific Investments Corp. (MPIC). It has businesses in vegetable production, coconut processing and export, integrated dairy processing, and ice cream.
MPIC is one of three key Philippine units of First Pacific, the others being Philex Mining Corp. and PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority share in BusinessWorld through the Philippine Star Group, which it controls.
ALI shares dropped by 0.61% or 15 centavos to P24.30 apiece on Tuesday. — Revin Mikhael D. Ochave
