MAKATI CITY – Ayala Land Inc. is strengthening its recurring-income businesses as a growing source of stability amid economic headwinds and challenges in the property sector, with leasing and hospitality revenues rising 8% to ₱37.8 billion in the first nine months of 2026.
The property developer reported net income of ₱17.5 billion and total revenues of ₱109.2 billion for the January-to-September period, while third-quarter revenues reached ₱34.2 billion and net income stood at ₱6 billion.
The stronger contribution from its leasing and hospitality portfolio reflects its continuing effort to diversify revenue streams, improve operational performance, and build a more resilient business amid changing market conditions.
“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,” said ALI’s CEO Anna Ma. Margarita B. Dy in the earnings release.
Leasing and hospitality businesses accounted for 36% of ALI’s real estate revenues in the first nine months, up from 29% a year earlier, highlighting the growing contribution of income-generating properties to its overall business.
Shopping centers generated ₱18.2 billion in revenues, up 4% year-on-year, supported by higher merchant sales and contributions from reinvented flagship malls, while the office segment contributed ₱9.4 billion and maintained vacancy levels that are better than industry.
Hospitality delivered one of the portfolio’s stronger growth performances, with revenues increasing 20% to ₱8.9 billion as renovated hotels and resorts contributed to improved operations, the company said.
Dry warehouse and cold storage facilities also expanded their contribution, generating ₱1.3 billion in revenues, up 12% from a year earlier on the back of higher portfolio occupancy.
The gains in recurring income came alongside continued contributions from property development, which generated ₱57.6 billion in revenues during the nine-month period and accounted for 55% of the company’s real estate revenues.
Total property development sales reservations reached ₱77.7 billion, equivalent to average monthly sales of ₱8.6 billion, supported by third-quarter contributions from premium residential projects and estate lots.
The company also launched ₱4.2 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 opportunities in regional growth centers.
Residential inventory remained at 15 months as of the third quarter, unchanged from the previous quarter, providing an indicator of its inventory position amid continuing challenges in the property market.
The company’s strategy of expanding recurring-income businesses is also reflected in its capital allocation, with year-to-date capital expenditures reaching ₱53.1 billion, down 19% year-on-year, while leasing accounted for 36% of total spending, compared with 28% a year earlier.
ALI also reduced its total debt by ₱8.4 billion during the third quarter using excess cash, bringing its net gearing ratio to 0.78 times while maintaining an interest coverage ratio of 4.3 times, according to the earnings release.
The company’s financial measures were accompanied by higher shareholder distributions, with declared 2026 dividends reaching ₱0.70 per common share, up 21% year-on-year, while total dividends paid and declared for the year amounted to ₱10.1 billion, 19% higher than the previous year.
Taken together, the growing contribution of leasing and hospitality, disciplined capital spending and lower debt point to ALI’s effort to strengthen the income base and financial flexibility needed to navigate market headwinds while continuing to invest in selected growth opportunities.
