Ayala Land Inc. expects leasing to become its main growth engine in 2027 as new malls and hotels mature, betting on recurring income and P55 billion in capital recycling to finance expansion without adding debt.
“For the rest of the year, what we’re seeing, the best way to describe it would be stability,” ALI president and chief executive officer Anna Ma. Margarita Dy said.
Residential sales are expected to sustain their recent pace in the fourth quarter, while new retail space and hotel openings should strengthen recurring income and provide a more durable source of earnings.
ALI is introducing nearly 200,000 square meters of retail space this year, while Mandarin Oriental Makati is scheduled to reopen on December 14, adding to the company’s hospitality portfolio.
Dy said leasing would account for most of ALI’s growth in 2027 as recently completed developments mature and renovated properties translate into higher rental and operating revenues.
The recurring-income businesses of leasing and hospitality already contribute more than half of the company’s earnings before interest, taxes, depreciation and amortization (EBITDA) and over a third of real estate revenues.
The returns from property upgrades are also becoming evident. Revenue per square meter at four renovated flagship malls increased 13 percent, while renovated hotels recorded a 19-percent increase in room rates.
On the residential front, ALI’s inventory has fallen to its lowest level since 2017 after management moderated project launches and prioritized selling existing units.
To sustain investment without weakening its balance sheet, Dy said the company would continue recycling capital through AREIT property infusions, asset disposals and partnerships.
These initiatives have raised more than P55 billion, helping bring ALI’s net debt-to-equity ratio down to 0.78 times.
“We will fund growth without additional debt,” Dy said.
“We go into 2027 as a stronger company.”
The strategy signals a shift toward extracting more income from ALI’s expanding property portfolio while keeping borrowing in check, with leasing expected to carry more of the growth burden as residential inventory is brought down.
