PEZA approvals slow, pipeline remains intact
From AB Capital's The Opening Bell: Three Moves
Event
PEZA approved P12.9bn of investments in January, down 57% YoY, reflecting timing effects rather than withdrawal. Eighteen projects span manufacturing, ecozone development, IT-BPM, logistics, and tourism, anchored by three large-scale ecozone projects totaling P11bn.
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We think the slowdown is weaker versus prior years on a monthly basis, but still within trend i.e. January is seasonally lumpy, and PEZA still targets P300bn for 2026. Importantly, approvals remain property-intensive, supporting industrial land absorption and ecozone expansion over time.
Catalyst
Key catalysts are project financial closings and board approvals in 2Q-3Q26. Upside comes from faster CREATE MORE-driven commitments. Downside risks include pipeline slippage and investor delays.
Action
We favor industrial developers and REITs leveraged to PEZA flows. Valuation support stems from visible land monetization and pre-leasing. We think approvals may pause, but ecozone demand remains intact.
Disclaimer: The information, analyses, and views contained herein is based on sources which we, AB Capital Securities, believe are reliable, but is not guaranteed by us and is not to be considered all inclusive. It is not to be construed as an offer or solicitation of an offer to sell or buy the securities herein mentioned. AB Capital Securities and its Directors and Officers and/or members of their families may have a position in the securities herein mentioned and may make purchases and/or sales of the securities from time to time in the open-market and otherwise.
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