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The reversal was evident in the first nine months of 2026, when leasing and hospitality accounted for 55 percent of earnings before interest, taxes, depreciation and amortization (EBITDA), against 45 percent from property development.
The company is now getting more out of its existing properties, with revenues from shopping centers rising 10 percent and hospitality climbing 20 percent despite the broader property slowdown.
“Reinvention is working,” Ayala Land president and CEO Anna Ma. Margarita "Meean" Dy said during the company’s quarterly earnings briefing on Thursday.
Ayala Land shares rose 2.5 percent to P15.60 each, paring a stock slump of about 30 percent so far this year. The broader Philippine Stock Exchange Index gained 1.46 percent on Thursday.
Housing slowdown
The gains stand in contrast to a 25 percent drop in total property sales reservations to P77.7 billion.
“This is where conditions are toughest, and we still sold 20 billion pesos worth this quarter,” Dy said.
The company has reduced its unsold residential inventory to P99 billion, its lowest since 2017, after limiting launches and focusing on selling existing projects.
“That allows us to be selective on terms,” Dy said, noting that about 40 percent of September sales were made under three-year payment arrangements.
Changing priorities
The stronger leasing business has softened the impact but not reversed the earnings decline, with nine-month net income falling 18 percent to P17.5 billion.
Despite weaker profits, Ayala Land plans to distribute P10.1 billion in dividends, up 19 percent from last year, returning more cash to shareholders.
The higher payout comes as Ayala Land shifts more of its investment budget toward malls, offices and hotels, which generate rental income without requiring the company to continually sell new properties.
Meanwhile, Ayala Land is preparing to open 200,000 square meters of new retail space by year-end.
Dy said the company would continue raising funds through annual property infusions into its real estate investment trust, AREIT Inc., alongside strategic asset sales.
She said these deals have already raised more than P55 billion, including the sale of its stake in Alabang Town Center, giving Ayala Land room to fund expansion while managing a debt load that reached about P300 billion earlier this year.
“We will fund growth without additional debt,” Dy said.
—Edited by Miguel R. Camus
