Property giant Ayala Land Inc. (ALI) is accelerating its push into leasing assets this year, pivoting toward malls, offices, and hotels as residential sales remain flat.
ALI president and chief executive Anna Ma. Margarita Bautista-Dy said leasing will be the company’s key growth driver this year, delivering double-digit growth.
“It will be a banner year for leasing,” Dy said, citing approximately 200,000 square meters of fresh gross leasable area (GLA) set for delivery in 2026. This month, the company opened Arca South mall in Taguig City.
In addition to the mall space opening this year, Dy said the company’s medium-term pipeline includes 600,000 square meters of mall space under planning or construction. For offices, ALI has 300,000 square meters in the pipeline, while about 1,500 hotel rooms are in development.
ALI’s leasing portfolio currently contributes about 45 percent of earnings before interest, taxes, depreciation, and amortization (EBITDA), while property development accounts for 55 percent. Given the current market, the company now expects to achieve a 50-50 EBITDA mix by 2027—two years earlier than its original 2029 target.
“We’re fortunate to have a diversified portfolio. If one segment is facing headwinds, we can focus on others and give them a push,” Dy said.
To support this shift, ALI has earmarked P70 billion in capital expenditures for the year, with 38 percent allocated to leasing projects. The balance will go toward residential development and land acquisitions, including installment payments for previously acquired properties.
The shift comes as the real estate market grapples with an oversupply of residential projects. This year, ALI plans to launch P30 billion worth of residential projects. While Dy said the company remains comfortable with its 19-month inventory level, she acknowledged oversupply issues in specific markets.
ALI also reported the conclusion of its share buyback program after repurchasing more than 1 billion shares at an average price of P26 each. Instead of extending the buyback, the company declared special dividends on top of its regular policy of paying out at least 30 percent of the previous year’s net income. The special payout adds another 10 percent, boosting total cash returns to shareholders.
