Ayala Land cuts 2026 capex to P50B

Ayala Land Inc. (ALI) is cutting its 2026 capital spending plan as softer first-quarter results push the company to adopt a more cautious stance on expansion.

ALI president and CEO Anna Ma. Margarita Bautista-Dy said in a media briefing on Thursday that the firm has “recalibrated” its capital expenditures (capex) to about P50 billion.

This comes down from its earlier P70 billion to P80 billion guidance, as the firm prioritizes balance sheet strength and cash flow discipline.

The move comes after ALI’s first-quarter net income fell 23 percent to P5.4 billion.

Also, revenues dropped 14 percent to P37.5 billion on weaker property sales.

“Our balance sheet remains robust, giving us flexibility to manage the cycle while preserving capacity for long-term growth,” Bautista-Dy said.

She added that the company is targeting minimal incremental debt this year.

Net debt rose by P16 billion in the first quarter, but Bautista-Dy said this is expected to ease. Residential unit turnovers are accelerating and leasing assets are generating a more stable cash flow.

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The property developer is leaning more heavily on its recurring income businesses to cushion volatility.

Leasing and hospitality revenues rose 9 percent in the first quarter. Bautista-Dy said these segments are “beginning to show” the benefits of a strategic shift made three years ago.

These businesses now account for 34 percent of total revenues, up from 23 percent in 2019. Over the medium term, they are expected to contribute more than half of earnings before interest, taxes, depreciation and amortization.