Ayala Land Inc., the Philippines' largest property developer, reported a 20% decline in first-quarter profit compared to the same period last year. The drop stemmed from reduced home sales across its residential portfolio, marking a challenging start to the year for the real estate giant.

The company attributed the weaker performance to broader economic headwinds, specifically pointing to the Middle East conflict as a factor dampening consumer spending and overall economic growth in the Philippines. Rising geopolitical tensions have created uncertainty in markets worldwide, affecting consumer confidence in emerging economies.

The results signal potential pressure on the Philippine property sector, where developers rely heavily on residential sales for revenue. The profit decline underscores how regional conflicts can ripple through supply chains and consumption patterns in economies closely tied to global trade and overseas worker remittances.