MANILA – Leasing business is what Ayala Land Inc. (ALI) is banking on to drive its business in the near term after residential developments declined in the third quarter of 2026.
In a disclosure with the Philippine Stock Exchange (PSE) on Thursday, the listed firm said revenues from property development segment amounted to PHP57.6 billion as of end-September this year, lower than the PHP75.9 billion in the same period last year.
Meanwhile, revenues from leasing and hospitality rose 8 percent to PHP37.8 billion from PHP35.1 billion a year ago.
In terms of the Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), leasing accounted for the largest share of the company’s financials over property development, with a share of 55 to 45, ALI Chief Financial Officer and Treasurer Jose Eduardo A. Quip II said in an online briefing.
Net income in the nine-month period this year reached PHP17.5 billion, down 18 percent from the previous year’s PHP21.4 billion.
For the third quarter alone, net income reached PHP6 billion, lower than the PHP7.21 billion in the same period last year.
In terms of capital expenditures, the company reported that the share of leasing and hospitality has exceeded residential at 36 percent, up from 32 percent.
For this year, capex is seen to hit below PHP70 billion, with the end-September level 19 percent lower year-on-year at PHP53 billion.
ALI President and Chief Executive Officer Anna Ma. Margarita Dy, during the same briefing, said they were “disciplined” in their residential business given the challenges they expected early on, but remained stable thanks to the leasing business.
“Reinvention is working,” she said, citing that revenue per square meter rose 13 percent for the company’s four renovated flagship malls, room rates in their renovated hotels increased 19 percent, and they have inked rental agreements for 23,000 square meters (sq. m.) of their office spaces.
She said they target opening 200,000 sq.m. of retail space by the end of December, further boosting the share of leasing in their overall revenues.
“We began 2026 expecting headwinds, and we executed faster as conditions required. We go into 2027 as a stronger company, confident in our portfolio and in our people,” she added. (PNA)//Ayala Land, Inc logo
