Ayala Land leans on leasing and hotels as nine-month net income hits ₱17.5 billion

Ayala Land Inc. (ALI) is relying more on its malls, offices, hotels and warehouses to steady its business, with revenues from leasing and hospitality rising 8% to ₱37.8 billion in the first nine months of 2026, according to Edge Davao, citing the company's earnings release.

The developer posted net income of ₱17.5 billion on total revenues of ₱109.2 billion from January to September. In the third quarter alone, revenues reached ₱34.2 billion and net income was ₱6 billion.

Leasing and hospitality made up 36% of ALI's real estate revenues for the period, up from 29% a year earlier. Shopping centres brought in ₱18.2 billion, up 4%, which the company attributed to higher merchant sales and its revamped flagship malls. Offices contributed ₱9.4 billion, with vacancy levels the company described as better than the industry's. Hotels and resorts grew fastest, with revenues up 20% to ₱8.9 billion following renovations, while dry warehouse and cold storage facilities earned ₱1.3 billion, up 12% on higher occupancy.

ALI chief executive Anna Ma. Margarita B. Dy said the company aims to build "a more resilient ALI with more diversified revenue streams," pairing its recurring income base with disciplined investment in selected high-profit projects.

Property development remained the largest segment, generating ₱57.6 billion, or 55% of real estate revenues. Sales reservations totalled ₱77.7 billion, an average of ₱8.6 billion a month. The company launched ₱4.2 billion worth of horizontal residential projects outside Metro Manila, including new phases of Sereneo in Nuvali and South Palm Grove in Lipa, Batangas. Residential inventory held at 15 months as of the third quarter.

Capital spending so far this year fell 19% to ₱53.1 billion, with leasing taking 36% of the total compared with 28% a year earlier. ALI also paid down ₱8.4 billion in debt during the third quarter using excess cash, bringing net gearing to 0.78 times, with interest coverage at 4.3 times.

Declared 2026 dividends reached ₱0.70 per common share, up 21% year-on-year, while total dividends paid and declared for the year came to ₱10.1 billion, 19% higher than in 2025.