MANILA: Property giant Ayala Land Inc is positioning for stronger growth in 2027, banking on higher recurring income, a more active but selective residential launch programme and a stronger balance sheet.
After a demanding year for the real estate sector, the Ayala-led firm said it was looking to convert gains from its leasing portfolio and a leaner residential inventory into fresh growth opportunities, without rushing to launch where demand remains uncertain.
“This was a demanding year for property, and Ayala Land delivered steady income in the third quarter (3Q26).
“We held to three priorities: grow leasing, stay disciplined in residential and strengthen the balance sheet while sustaining returns,” Ayala Land president and chief executive officer Anna Maria Margarita Bautista Dy said.
For the first nine months of 2026 (9M26), Ayala Land posted 17.5 billion Philippine pesos in net income on revenues of 109.2 billion pesos, while 3Q26 profit held steady sequentially at six billion pesos.
Leasing and hospitality revenues, meanwhile, grew 8% to 37.8 billion Philippine pesos in the 9M26.
“Reinvention is working. Revenue per sq m at our four renovated flagship malls is up 13%. Our renovated hotels have raised room rates by 19%, and in offices, we signed 23,000 sq m this quarter, the highest in the industry,” Dy said.
“By year-end, we will open 200,000 sq m of new retail space, including Arca South, Ayala Malls Gatewalk in Cebu and the fourth phase of Nuvali. On Dec 14, Mandarin Oriental Makati reopens, and as these assets mature, we expect leasing and hospitality to contribute a greater share of their earnings,” she added.
This growing base of rental and hospitality income, according to Dy, is expected to support earnings in 2027 even as residential sales recover gradually.
Total property development sales reservations reached 77.7 billion Philippine pesos, equivalent to average monthly sales of 8.6 billion pesos, supported by 3Q26 contributions from premium residential projects and estate lots.
“Eighteen out of the 20 projects are located within our estate, so the estate story really adds to the value,” said Ayala Land chief commercial officer Mike Jugo.
“We’re seeing a lot more end-users versus investors, and that’s how we’re targeting a lot of our programmes to address the end-user market with price points primarily below 20 million Philippine pesos.
“Maybe the sweet spot would be in the six million to 15 million pesos price range,” Jugo explained.
Ayala Land also said it limited launches to about five billion Philippine pesos in 2026 while reducing residential inventory to 99 billion pesos, or 15 months of sales – its lowest level since 2017.
“Residential is where conditions are toughest, and (yet) we still sold 20 billion Philippine pesos worth this quarter. We limited launches this year and worked down inventory. At 99 billion pesos, inventory is at its lowest since 2017,” Dy said.
“We’re fairly confident that with the remaining inventory, which is primarily 74% in the premium inventory, we have enough to be able to sustain sales for residential,” Jugo added. — Philippine Daily Inquirer/ANN
