Ayala Land Inc. (ALI) is relying on its expanding leasing and hospitality businesses to sustain operations amid weaker residential property development revenues in the first nine months of 2026.
In a disclosure to the Philippine Stock Exchange (PSE) on Thursday, the property developer reported that revenues from its property development segment declined to Php 57.6 billion as of end-September, compared with Php 75.9 billion during the same period last year.
Meanwhile, leasing and hospitality revenues increased by 8 percent to Php 37.8 billion from Php 35.1 billion in the first nine months of 2025, reflecting continued growth in the company’s recurring income businesses.
ALI Chief Financial Officer and Treasurer Jose Eduardo Quip II said leasing had overtaken property development in terms of earnings before interest, taxes, depreciation, and amortization (EBITDA).
During an online briefing, Quip said leasing accounted for 55 percent of the company’s EBITDA, while property development contributed the remaining 45 percent.
Despite stronger leasing performance, ALI’s net income declined by 18 percent to Php 17.5 billion from Php 21.4 billion in the comparable nine-month period last year.
For the third quarter alone, net income fell to Php 6 billion from Php 7.21 billion a year earlier.
The company also reported a shift in capital spending priorities, with leasing and hospitality accounting for 36 percent of capital expenditures, up from 32 percent.
ALI expects its full-year capital expenditures to remain below Php 70 billion. As of September, spending reached Php 53 billion, down 19 percent year-on-year.
ALI President and Chief Executive Officer Anna Ma. Margarita Dy said the company had adopted a disciplined approach to residential development in anticipation of challenging market conditions.
She emphasized that the company’s strategy of strengthening its leasing portfolio has helped support business performance.
“Reinvention is working,” Dy said, citing improvements in the company’s shopping malls, hotels, and office leasing operations.
According to Dy, revenue per square meter increased by 13 percent across four renovated flagship malls, while room rates at refurbished hotels rose by 19 percent.
The company also secured rental agreements covering approximately 23,000 square meters of office space.
To further strengthen its recurring income portfolio, ALI plans to open an additional 200,000 square meters of retail space before the end of December.
The expansion is expected to increase the contribution of leasing operations to the company’s overall revenues as it adjusts to slower residential property market conditions.
“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,” Dy said.
The company remains focused on improving the performance of its existing assets, expanding its leasing portfolio, and maintaining disciplined investments as it prepares for 2027.
