Ayala Land profit drops 18% despite leasing gains
Ayala Land Inc., a pioneer in integrated mixed-use developments in the Philippines, was the real estate division of Ayala Corporation until it fully branched out on its own in 1988. Its beginnings are anchored on the development of Makati.
PHOTOGRAPH courtesy of Ayala Land Inc
Ayala Land Inc. (ALI) saw its net income decline 18.2 percent to P17.5 billion in the first nine months of 2026 from P21.4 billion a year earlier, as weaker overall revenues offset gains in its leasing and hospitality businesses.
In a Thursday stock exchange disclosure, the property giant reported consolidated revenues of P109.2 billion from January to September, down 10.3 percent from P121.8 billion in the same period last year.
Despite the decline, third-quarter net income held steady quarter-on-quarter at P6 billion on revenues of P34.2 billion.
Leasing and hospitality remained key growth drivers, with combined revenues rising 8 percent to P37.8 billion on improved occupancy rates and stronger operating performance.
Recurring income businesses accounted for 55 percent of total earnings before interest, taxes, depreciation and amortization (EBITDA), up from 44 percent a year earlier.
“Despite headwinds, Ayala Land achieved steady income in the third quarter of 2026. Our continuous goal is to build a more resilient ALI with more diversified revenue streams, focusing on our recurring income base,” ALI President and CEO Anna Ma. Margarita Bautista-Dy said.
Shopping center revenues grew 10 percent to P18.2 billion, excluding one-off asset sales in 2025, while hospitality revenues jumped 20 percent to P8.9 billion following improvements at renovated hotels and resorts.
Meanwhile, property development revenues reached P57.6 billion, with sales reservations totaling P77.7 billion, equivalent to monthly sales of P8.6 billion.
ALI also reduced capital expenditures by 19 percent to P53.1 billion, while trimming its debt by P8.4 billion in the third quarter to strengthen its balance sheet.
The company declared P5 billion in second-half cash dividends, bringing total shareholder payouts this year to P10.1 billion, up 19 percent year-on-year.