Recurring income bolsters Ayala Land amid property sector headwinds

Ayala Land Inc. is bolstering its recurring-income portfolio to buffer against property sector headwinds, reporting an 8% increase in leasing and hospitality revenues to ₱37.8 billion for the first nine months of 2026.

The property developer posted a net income of ₱17.5 billion and total revenues of ₱109.2 billion for the January-to-September period. Third-quarter revenues reached ₱34.2 billion with a net income of ₱6 billion.

According to the company, the expansion reflects an ongoing strategy to diversify revenue streams, enhance operational efficiency and build business resilience.

"Our goal is to build a more resilient ALI with more diversified revenue streams, focusing on our recurring income base,coupled with disciplined capital investments on selected high profit projects," president and CEO Anna Ma. Margarita B.Dy said in an earnings release.

Leasing and hospitality operations accounted for 36% of Ayala Land’s real estate revenues during the nine-month period,up from 29% a year earlier.

Shopping centers generated ₱18.2 billion, a 4% year-on-year increase driven by higher merchant sales and revitalized flagship malls. The office segment contributed ₱9.4 billion, maintaining vacancy rates below industry averages.

Hospitality posted one of the portfolio's strongest gains, with revenues jumping 20% to ₱8.9 billion following the operations of renovated hotels and resorts. Dry warehouse and cold storage facilities added ₱1.3 billion, up 12% on increased occupancy.

Property development remained a core driver, generating ₱57.6 billion and accounting for 55% of real estate revenues.Total development sales reservations hit ₱77.7 billion, averaging ₱8.6 billion per month, backed by premium residential projects and estate lots.

The developer launched ₱4.2 billion in horizontal residential projects outside Metro Manila, including new phases of Sereneo in Nuvali and South Palm Grove in Lipa, Batangas. Residential inventory held steady at 15 months through the third quarter.

Capital expenditures reached ₱53.1 billion, down 19% from the previous year, with leasing projects claiming 36% of total spending compared with 28% a year ago.

The company also trimmed its total debt by ₱8.4 billion in the third quarter using excess cash, lowering its net gearing ratio to 0.78 while maintaining an interest coverage ratio of 4.3.

Shareholder returns rose as well, with declared 2026 dividends reaching ₱0.70 per common share, up 21% year-on-year.Total dividends paid and declared for the year totaled ₱10.1 billion, marking a 19% increase.