Ayala Land Inc. is raising its 2026 capital spending plan to P60 billion from P50 billion, signaling stronger confidence in its project pipeline even as residential demand remains selective.
ALI President and CEO Anna Ma. Margarita Dy said the additional P10 billion will support the company’s commitment to deliver about 13,000 residential units, 200,000 square meters of gross leasable mall space, and 30,000 square meters of offices this year.
“We made the priority to deliver on the 13,000 residential units and ensure that we complete the 200,000 square meters of GLA of malls, and the 30,000 of offices that we said we will do this year,” Dy said.
The higher capex comes as ALI takes a measured approach to residential launches, prioritizing inventory reduction while selectively adding projects where demand remains resilient.
The company plans about P5 billion in horizontal residential launches in the second half, with projects concentrated in areas such as Arca South and Nuvali.
Management expects the second-half sales environment to broadly mirror the first half, with existing inventory sufficient to support its targets. Residential inventory stood at about P110 billion, equivalent to roughly 15 months of supply, still below pre-pandemic levels.
The more encouraging signals are coming from ALI’s recurring businesses.
About 14 percent of its office portfolio is due for renewal this year, with nearly 80 percent of those leases already secured in the first half. Rental reversions are running at around 5 percent to 6 percent, suggesting continued stability in the office portfolio despite a cautious property market.
The mall business is also expanding. Nuvali is scheduled to open in November, followed by Gatewalk in Mandaue, Cebu, in December, with IKEA as an anchor.
ALI said refreshed malls have generated rental rate increases of about 25 percent, providing another reason for the company to keep investing even while residential launches remain disciplined.
The higher capex guidance therefore reflects more than a bet on a broad property recovery. It points to a deliberate shift toward projects with clearer demand, stronger recurring income potential, and established estate ecosystems.
With residential inventory under control and leasing indicators holding up, ALI appears increasingly willing to spend where it sees visibility rather than simply chase volume.
