“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,” Zobel, the chair of Ayala Land, said during the company’s annual stockholders’ meeting on Thursday.
“The strategy we put in place is to pivot towards leasing through expanding our leasing footprint and reinventing our malls and hotels has become even more relevant under these circumstances,” he added.
Sector under pressure
This comes as parts of the real estate sector are weighed down by excess inventory and wobbling confidence, amplified by the mass exit of Chinese online gambling operators and the flood control scandal of 2025.
Mounting pressures are forcing developers like Ayala Land to take a more cautious stance.
Earlier this week, the property giant paused mid-market project The Heights Katipunan and its Laurean Residences luxury tower in Makati City.
Preserving liquidity
“We will manage our residential launches and reduce our inventory,” Zobel said on Thursday.
He said this also entails lower capital spending for the year to preserve their liquidity.
“We want to preserve our flexibility so that we have the resources available when this crisis ends or when new opportunities arise,” the tycoon said.
Even before the US-Iran war started, Ayala Land had budgeted a lower P70-80 billion expansion budget this year after spending P93 billion in 2025—its highest in the post-pandemic era.
During the meeting, chief financial officer Jose Eduardo A. Quimpo II highlighted the company’s healthy balance sheet and ability to withstand the downturn.
JAZA daughter oversees key portfolio
The shift puts the spotlight on the company’s malls, offices and hotels, overseen by Zobel’s daughter, Mariana Beatriz Zobel de Ayala, a senior vice president at the firm.
Part of the eighth-generation Zobel family, she stepped into a bigger leadership role around three years ago in the group’s crown jewel real estate business.
For the rest of the year, Ayala Land aims to complete the rehabilitation of its flagship malls in Makati and open new shopping centers, adding a record 200,000 gross leasable area.
Another 70,000 GLA in office space is up for completion this year, with lease-out rates hovering under 90 percent, while Ayala Land also plans to add more hotels, including the 276-room Mandarin Oriental in Makati in the fourth quarter of 2026.
2026 priorities
During the meeting, president and CEO Anna Ma. Margarita "Meean" Dy doubled down on the company’s focus on financial discipline for 2026.
“We entered 2026 with a clear set of priorities: to accelerate our pivot toward recurring income, realizing value from our reinvented assets and a banner year of new mall openings,” she said during the meeting.
Dy also said the company will be more disciplined in development, focusing on selling existing inventory and recycling capital into higher-return projects.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
