ALI hikes capex to P60B on improving confidence

MANILA, Philippines — Property giant Ayala Land Inc. (ALI) raised its 2026 capital spending guidance to P60 billion from P50 billion, signaling stronger confidence despite a challenging property market.

ALI president and CEO Anna Ma. Margarita Bautista-Dy said in a media briefing the higher capex budget comes as the company saw signs of stabilization in the second quarter following a difficult start to the year.

READ: Ayala Land 6-month earnings down 19%

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“Capex, actually, we’re confident to bring it back up to about P60 billion,” Dy said. “A reflection of the confidence that we have.”

While still below what ALI initially expected to spend for the year, she said the revised figure was higher than the guidance given after the first quarter and reflected the company’s confidence in its business.

ALI targets about 13,000 residential units this year, with 6,000 completed in the first half, and is on track to deliver 200,000 square meters of mall space.

Dy said ALI’s priority in the second quarter was to stabilize the business by managing debt, closely monitoring collections, improving revenues and earnings on a sequential basis, and reducing inventory levels.

The company also brought its inventory down to about 15 months, which Dy said was its lowest since the pandemic and was already close to pre-pandemic levels.

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ALI chief finance officer Jed Quimpo said total real estate revenues were flat in the second quarter compared with the first quarter.

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Still, the property development business grew by a meager 1 percent sequentially, with residential revenues rising by 3 percent.

Leasing and hospitality revenues were also flat amid the impact of the Middle East conflict.

Quimpo said the company also benefited from efforts to rein in spending, including lower real estate and financial expenses.

ALI, however, remains cautious about the rest of the year amid geopolitical risks and slower economic growth. “We think it’s still a very challenging market. I mean, the war hasn’t ended,” Dy said.

She added that ALI expects its performance in the second half to be “mostly in line” with its first-half performance.

In a separate disclosure, ALI subsidiary Ayala Land Logistics Holdings Corp. saw its first-half net income plunge by nearly 90 percent to P11 million from P105 million a year ago. /pai