Ayala Land Inc. (ALI) has reduced its 2026 capital spending plan to around P50 billion, down from an earlier projection of P70 billion to P80 billion, as the property developer navigates softer first-quarter earnings. The company reported a 23% drop in net income to P5.4 billion and a 14% decline in revenues to P37.5 billion for the quarter, driven by weaker property sales.
ALI President and CEO Anna Ma. Margarita Bautista-Dy announced the recalibrated capital expenditures during a media briefing on Thursday, emphasizing the company's focus on maintaining a strong balance sheet and cash flow discipline. "Our balance sheet remains robust, giving us flexibility to manage the cycle while preserving capacity for long-term growth," she said.
Bautista-Dy added that the company aims to keep incremental debt minimal this year. Although net debt rose by P16 billion in the first quarter, she expects it to ease as residential unit turnovers accelerate and leasing assets generate more stable cash flows.
To cushion volatility, ALI is increasingly relying on its recurring income businesses. Leasing and hospitality revenues grew 9% in the first quarter, and these segments now account for 34% of total revenues, up from 23% in 2019. Over the medium term, they are expected to contribute more than half of the company's earnings before interest, taxes, depreciation, and amortization.