Revenue per square meter at four renovated flagship malls rose 13%, while room rates at upgraded hotels climbed 19%, as leasing and hospitality now account for 55% of Ayala Land’s EBITDA.
MANILA — Ayala Land Inc.’s investments in upgrading its malls and hotels are beginning to translate into higher returns, as improved rental and room rates help strengthen the company’s recurring-income businesses amid a challenging property market.
Revenue per square meter across the company’s four renovated flagship malls increased 13%, while room rates at its renovated hotels rose 19%, Ayala Land president and CEO Meean Dy said during the company’s nine-month results briefing.
The gains contributed to an 8% increase in leasing and hospitality revenues to ₱37.8 billion in the first nine months of 2026. The businesses accounted for 55% of the company’s earnings before interest, taxes, depreciation and amortization (EBITDA), up from 44% a year earlier.
The results point to the growing contribution of existing income-generating properties, with management attributing the improvement to better occupancy, higher rental rates and stronger operating performance.
Making existing assets work harder
Shopping center revenues reached ₱18.2 billion in the nine-month period. While reported growth was 4% year-on-year, revenues increased 10% excluding the impact of one-off asset sales in the previous year.
Same-mall revenues grew 8%, with flagship and premier malls recording 10% growth. Higher rental rates per square meter, improved occupancy and additional income from venue rentals, advertising and cinemas supported the performance.
The improvements come as Ayala Land completes major reinvention works across its flagship malls, including Glorietta, Greenbelt, Trinoma and Ayala Center Cebu.
Rather than relying solely on new retail developments to expand its leasing business, the company is seeking to improve the productivity of existing properties through upgrades that strengthen their appeal to shoppers and tenants.
The contribution of newly opened retail space is expected to build over time as the developments attract tenants and establish customer traffic.
Office portfolio sustains leasing activity
Ayala Land’s office business generated ₱9.4 billion in revenues, up 4% from a year earlier, while maintaining vacancy levels below industry averages.
The company signed approximately 23,000 square meters of new office leases during the third quarter, its highest quarterly volume this year, according to management. It also reported continued demand for office space in its established business districts.
The performance provides another source of recurring income alongside its retail and hospitality businesses, as companies continue to assess their space requirements and workplace strategies.
Hospitality posts faster growth
Hotels and resorts were the fastest-growing component of the leasing and hospitality portfolio, with revenues increasing 20% to ₱8.9 billion in the first nine months. The improvement was supported by better operating performance at renovated properties, including hotels under the Seda brand and resort properties such as El Nido Resorts.
The hospitality business is also preparing for the December 14 reopening of Mandarin Oriental Makati, adding a major hotel property to the company’s portfolio and restoring an established international brand to the city.
Adding capacity to the portfolio
Alongside improvements to existing properties, Ayala Land is bringing new retail developments and additional commercial space into its portfolio.
The company expects to open close to 200,000 square meters of new retail space by year-end, including Ayala Malls Gatewalk in Mandaue City, Cebu, which will house the first IKEA store in the Visayas.
Other additions include the Ayala Malls Nuvali expansion in Laguna, The Exchange at Trinoma and new retail and dining concepts in established malls.
These developments are expected to contribute to leasing revenues as they build occupancy and customer traffic, complementing the gains already being generated by the company’s existing properties.
For Ayala Land, the combination of improving asset productivity and carefully expanding its portfolio is strengthening the recurring-income base that supports its broader property development business.
