MANILA, Philippines — Ayala Land Inc. (ALI) is fortifying its recurring-income businesses as a stabilizing force amid economic headwinds and a challenging property market, with leasing and hospitality revenues climbing eight percent to P37.8 billion in the first nine months of 2026.
ALI CEO Anna Ma. Margarita Dy said the company posted net income of P17.5 billion and total revenues of P109.2 billion for the January-to-September period. In the third quarter alone, revenues reached P34.2 billion with net income of P6 billion.
The property developer’s stronger contribution from leasing and hospitality reflects its push to diversify revenue streams, sharpen operational performance, and build a more resilient business amid shifting market conditions, Dy said in a statement.
"Our goal is to build a more resilient ALI with more diversified revenue streams, focusing on our recurring income base, coupled with disciplined capital investments on selected high-profit projects," Dy said.
Leasing and hospitality accounted for 36 percent of ALI’s real estate revenues in the first nine months, up from 29 percent a year earlier, underscoring in its portfolio the growing weight of income-generating properties, Dy said.
Meanwhile, ALI said shopping centers brought in P18.2 billion, up four percent year-on-year, lifted by higher merchant sales and reinvented flagship malls. The office segment contributed P9.4 billion while keeping vacancy levels the company described as better than the industry.
ALI said hospitality is among the portfolio's strongest performers with revenues up 20 percent to P8.9 billion as renovated hotels and resorts boosted operations. Dry warehouse and cold storage facilities also grew their contribution, generating P1.3 billion, up 12 percent on higher occupancy.
Recurring-income gains came alongside continued contributions from property development, which generated P57.6 billion in revenues and accounted for 55 percent of real estate revenues during the period, according to its statement.
It said that development sales reservations reached P77.7 billion—averaging P8.6 billion a month—supported by third-quarter contributions from premium residential projects and estate lots.
ALI also launched P4.2 billion worth of horizontal residential developments outside Metro Manila, including succeeding phases of Sereneo in Nuvali and South Palm Grove in Lipa, Batangas, as it pursued growth centers in the regions.
Residential inventory stood at 15 months as of the third quarter, unchanged from the prior quarter, it added.
The strategy is reflected in ALI's capital allocation: year-to-date capital expenditures reached P53.1 billion, down 19 percent year-on-year, with leasing accounting for 36 percent of total spending versus 28 percent a year earlier.
Dy said the company also trimmed total debt by P8.4 billion in the third quarter using excess cash, bringing its net gearing ratio to 0.78 times while keeping interest coverage at 4.3 times.
Shareholder returns rose as well, with declared 2026 dividends reaching P0.70 per common share, up 21 percent year-on-year. Total dividends paid and declared for the year hit P10.1 billion, 19percent higher than the previous year.
Dy said the growing contribution of leasing and hospitality, disciplined capital spending, and reduced debt reflect ALI's drive to strengthen its income base and financial flexibility—giving it room to navigate market headwinds while still investing in selected growth opportunities.
