Ayala Land Inc. is setting aside between P70 billion and P80 billion in capital spending this year, lower than last year’s P92.9 billion, as it shifts focus toward leasing and hospitality projects that generate steady income.
Company president and CEO Anna Ma. Margarita Bautista-Dy said 38 percent of this year’s budget will go to leasing developments, reflecting a strategy to rely more on recurring revenues. The move comes as residential property supply in Metro Manila remains high.
Dy said leasing will be the main driver of earnings growth in 2026, with the company prioritizing the full use of its renovated malls and hotels. Five major assets were upgraded last year, and the focus is now on improving operations and increasing returns.
This year, Ayala Land will open about 200,000 square meters of new retail space, the largest single-year addition in its history. This includes the recently opened Arca South mall. The company will also add more than 70,000 square meters of office space in Evo City, Arca South and Gate Walk.
Ayala Land has also signed three major leases with multinational firms in Quezon City and Cebu, covering a total of 82,000 square meters. Meanwhile, the Mandarin Oriental hotel will reopen in the fourth quarter, adding 276 rooms to its portfolio.
The company expects renovated hotels to post a 10 to 20 percent increase in room rates, while upgraded malls are projected to see rental rates rise by 15 to 20 percent. The redevelopment of flagship malls, including Glorietta and Greenbelt, will be completed by mid-2026, followed by the completion of Ayala Center Cebu and TriNoma by December 2025.
Looking ahead, Ayala Land said it has P30 billion worth of new project launches lined up for 2026, ready to roll out when market conditions are favorable.
The company said leasing will account for a bigger share of investments moving forward as it expands malls, offices and hotels across its estates.
