Ayala Land Inc. is dialing back expansion plans and leaning on its leasing business as global uncertainty and a lingering property glut reshape the company’s strategy.

The property giant is slowing residential project launches, trimming capital spending, and managing inventory levels as it prioritizes liquidity and financial flexibility. The move comes as geopolitical tensions in the Middle East add pressure to a market still recovering from the collapse of demand tied to Philippine offshore gaming operators.

“There’s no doubt that the Middle East crisis is a significant disruptor, especially for the property development industry. In times like these, our top priority is stability over aggressive growth,” said Chairman Jaime Augusto Zobel de Ayala.

Instead of pushing new developments, the company is strengthening its recurring income base, with leasing—particularly malls, offices, and hotels—expected to play a larger role in earnings. The shift is meant to provide steadier revenue through economic cycles and external shocks.

“We’re focused on ensuring ample liquidity and maintaining the flexibility to act swiftly when the environment improves,” Zobel said.

Company officials said the pivot reflects limited visibility in the near term, with management preparing for prolonged market uncertainty. Still, Ayala Land expects its leasing segment to continue expanding and eventually lead growth once conditions stabilize.

“Our focus on building a stronger recurring income business is precisely to help us weather disruptions and cycles with more dependable revenue streams,” Zobel said.

The strategy includes reinvestments in malls and hotels, which are projected to boost rental rates and room revenues once operations stabilize. The company is also scaling up its industrial assets, particularly cold storage facilities, as part of a broader diversification effort.

Despite the cautious stance, Ayala Land is proceeding with key developments within its estates, which remain central to both its leasing and residential businesses. All planned leasing expansions over the next three years will be located within these integrated communities.

For 2026, the company is set to add over 200,000 square meters of retail space and more than 70,000 square meters of office capacity, marking its largest annual expansion in commercial assets. The reopening of the Mandarin Oriental hotel in Makati is also scheduled for the fourth quarter.

Ayala Land expects the growing contribution of leasing to make its earnings more predictable, with the segment projected to account for a larger share of its income mix in the coming years.