PLDT in selling mode, targets P26 billion from tower, share sale

MANILA, Philippines —Telco giant PLDT Inc. expects to  generate P26 billion in fresh capital next year, buoyed by a new round of tower sale and the potential initial public offering (IPO) of its data center unit.

PLDT chief financial advisor Stanley Yang yesterday said the telco would focus on monetizing idle assets next year to raise fresh funds for capital expenditures.

In particular, Yang said PLDT is discussing a prospective sale and leaseback agreement for 150 to 200 towers, to be closed in the first quarter of 2027.

The proposed tower sale will infuse as much as P2 billion in capital into the telco. If things go as planned, the transaction will mark another tower sale signed by PLDT, building on similar deals in 2022 and 2023.

PLDT chairman, president and CEO Manuel V. Pangilinan said the telco wants to secure as much as P25 billion from the monetization of its data centers.

Pangilinan said data center builder VITRO Inc. could still proceed with its listing as a real estate investment trust (REIT) on the Philippine Stock Exchange.

However, Pangilinan said VITRO becoming a REIT would depend on how interest rates change in 2027, especially as REITs, being property plays, hang largely on borrowing costs.

Originally, VITRO was supposed to list this year to raise P24.2 billion, but deferred it because of economic risks and monetary tightening.

For 2027, Yang said the telco would also sell non-core properties, including idle offices, to raise fresh capital. So far, PLDT has generated P4.1 billion from the sale of copper cables and inactive offices.

Based on its financial report, PLDT’s net income declined by eight percent to P21.67 billion, as the telco sustained higher expenses. Telco core income, measured as profit on core services, fell by six percent to P23.48 billion.

The bright spot for the telco is that revenue increased by two percent to P166.21 billion, showing that the business is earning well, and finances are just dragged by costs.

Digital bank Maya also maintained profitability to contribute more to PLDT, growing its deposit balance to more than P95 billion from the addition of new consumers.