Ayala Corp. sees ‘resilience’ across units amid headwinds

AYALA CORP. said it expects overall stability across its business units this year, although performance may vary by segment depending on market conditions.

“All our businesses will be resilient. All of them. With no exception. You might have one or two businesses not being able to make the same profits or might register losses, but they will be resilient,” Ayala Corp. President and Chief Executive Officer Cezar P. Consing said during the company’s media briefing on Friday last week.

He said the real estate segment may face pressure from higher interest rates following the Bangko Sentral ng Pilipinas’ decision last week to raise its key policy rate by 25 basis points to 4.5%, ending an easing cycle.

He added that leasing and other recurring income streams may partly offset the impact.

Ayala Corp.’s core net income, excluding one-off items, rose 7% to P48.3 billion last year, supported by stronger results from Bank of the Philippine Islands and Ayala Land, Inc. (ALI), as well as recoveries in non-core units that offset declines at Globe Telecom, Inc. and AC Energy & Infrastructure.

ALI reported consolidated net income of P39.1 billion for 2025, up 38.7% from P28.2 billion in 2024, driven by leasing and hospitality and gains from portfolio management.

During its annual stockholders’ meeting on Thursday last week, ALI said it is maintaining a solid financial position while expanding its recurring income businesses, particularly leasing and hospitality.

The company said it continues to manage its portfolio as part of its long-term capital strategy, including reviewing assets for possible reinvestment into higher-return opportunities.

“Capital recycling has become one of our key levers… we continuously unlock value while retaining exposure to quality income streams. This active portfolio management means we are not passively holding assets,” ALI Chief Finance Officer and Treasurer Jed Quimpo said.

ALI reported a net debt-to-equity ratio of 0.8x and an interest coverage ratio of more than four times, indicating moderate leverage and capacity to service debt. Total debt stood at about P300 billion, supported by an asset base of roughly P1 trillion.

About P25 billion in debt is set to mature in 2026, with the company expected to tap existing funding sources, including the bond market, to meet these obligations.

ALI is expanding its leasing and hospitality portfolio to increase recurring income.

The company plans to add about 270,000 square meters of new mall and office space this year, along with the reopening of the Mandarin Oriental hotel.

Over the next five years, it aims to expand its leasing footprint by more than 1 million square meters to balance earnings between property development and recurring income.

In its residential segment, ALI said demand remains steady, supported by selective project launches across key estates. It is targeting the delivery of about 13,000 units this year, including about P124 billion in premium segment turnovers.

Mr. Consing said Ayala Corp. is reviewing its capital expenditures for 2026 and expects spending to be broadly in line with last year’s P180-billion level, below the earlier target of P220 billion to P230 billion.

“When we were entering this year, we said P220-230 billion. At that point, this was before the oil crisis, so we were really thinking of ramping up. Now we are reviewing that number again because we might have to calibrate that down,” he said.

Ayala Corp. is the holding company of the Ayala Group, with businesses spanning real estate, banking and financial services, telecommunications, power generation, healthcare, logistics, infrastructure, industrial manufacturing, education, and technology services. — Alexandria Grace C. Magno