PLDT income eases 7%; data center REIT plan under study

PLDT INC.’s attributable net income slipped by 7.12% to P30.01 billion in 2025, as higher expenses and flat core earnings weighed on results, while the company also said it plans to pursue a real estate investment trust (REIT) listing for its data center business after shelving earlier plans to sell a minority stake.

“The first half of the year was tough, but we regained momentum in the second half, with our third quarter gains carrying us through to the end of 2025. Our core business has remained stable, especially considering the challenges in the wider economy. We likewise saw our disciplined and focused investments strengthen our free cash flow,” PLDT Chairman Manuel V. Pangilinan said in a statement on Thursday.

PLDT Chief Financial Officer and Chief Risk Management Officer Danny Y. Yu said heightened competition in the telecommunications sector also contributed to the weaker income performance.

Telco core income — which excludes the impact of asset sales and losses from Maya Innovations Holdings — declined by 3% to P33.93 billion from P35.14 billion in 2024.

Gross revenue in 2025 rose 1% to P218.39 billion from P216.83 billion the previous year.

Service revenue accounted for P212.19 billion, while non-service revenue reached P6.20 billion.

Total expenses increased 1% to P168.04 billion from P166.30 billion in 2024.

For 2026, the company set capital expenditure (capex) guidance in the mid‑P50‑billion range, Mr. Yu said. This is slightly below the about P60 billion spent in 2025.

Meanwhile, Maya Group recorded its first full-year profit in 2025, posting P1.7 billion in net income on improved execution and cost management supported by platform ownership.

Mr. Pangilinan earlier said Maya is targeting an initial public offering (IPO) in the second half of the year, with plans to list first in the United States and then on the Philippine Stock Exchange.

The IPO is intended to raise fresh capital while giving existing investors room to exit, and allowing PLDT to retain its stake. PLDT and First Pacific Co. Ltd. jointly own 39% of Maya.

DATA CENTER REIT
PLDT now plans to pursue a REIT listing for its data center subsidiary VITRO, Inc., Mr. Yu said.

The move comes after negotiations with potential investors failed to advance because they preferred majority control rather than the minority stake PLDT was willing to sell.

“We are selling idle properties (to help cut down debts). We are also seriously considering REIT listing IPO for data centers,” Mr. Yu said. Consolidated net debt as of end‑December 2025 was P284.7 billion. Net debt‑to‑EBITDA (earnings before interest, taxation, depreciation, and amortization) stood at 2.56x, while gross debt reached P296.9 billion.

“Most of them want the majority, all of them. None of them agree with the minority stake… So, our only choice right now is REIT,” Mr. Yu added.

“We’re really taking a look at the new SEC rules that classify new real estate investment trust in relation to data centers. It is for us to understand the rules on how to properly engage in such an option,” ePLDT Inc. President and Chief Executive Officer Victor S. Genuino said on the sidelines of PLDT’s briefing.

He said REIT rules applicable to real estate could allow VITRO to list nine of its mature data centers.

“We have to make a decision whether that’s a path that we want to take. It’s clear for us that if we want to take this route of monetizing our asset, selling it to an interested third party for a majority is not going to happen. So we want to keep control of our assets because we think this is going to be a catalyst for growth,” Mr. Genuino said.

Last year, PLDT inaugurated VITRO Sta. Rosa, its 11^th data center. The five‑hectare facility in Laguna is described as the country’s largest data center campus, with capacity of up to 50 megawatts (MW). Across all sites, VITRO has nearly 100 MW of combined capacity.

At the local bourse on Thursday, PLDT shares closed P20, or 1.42%, higher at P1,425 each.

Hastings Holdings, Inc., a unit of the PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose