At its recent 2026 first-half analyst and media Briefing, Ayala Land, Inc. (ALI) pointed to signs of stabilization following a challenging start to the year, supported by stronger second-quarter earnings, continued growth in leasing and hospitality, and improving residential inventory.
ALI reported first-half net income of P11.5 billion on revenues of P75 billion. While both remained below year-ago levels, second-quarter net income rose 13% from the previous quarter to P6.1 billion, an improvement management sees as an early indication that measures taken to stabilize the business are gaining traction.
“One quarter does not make a recovery, but our second quarter results show that the actions we’ve taken are starting to bear fruit,” said Meean Dy, president and CEO of Ayala Land, Inc.
Following the first quarter, Dy said the company focused on stabilizing the business, working down inventory and maximizing the performance of its leasing assets.
Leasing provides momentum
Leasing and hospitality have emerged as a key source of momentum. First-half revenues from the segment grew 9% to P25.2 billion, with shopping center revenues rising 4%, office revenues up 2%, and hospitality revenues climbing 28% to P6.3 billion.
“Leasing and hospitality remained the strongest part of our portfolio,” Dy said.
ALI has completed reinvention works at flagship malls Glorietta and Greenbelt, while new growth is coming from Nuvali and Arca South. The company is on track to open around 200,000 square meters of mall space this year—its largest mall portfolio opening in a single year—with another 100,000 square meters targeted in 2027.
Existing malls are also showing improvement. Lease-out reached 90% in the first half, while same-mall revenues grew 7% and visitor footfall increased 5%. Offices, meanwhile, remained resilient, supported by healthy occupancy rates.
Hospitality is another bright spot. Revenues grew 28% year-on-year, supported by renovated properties and the contribution of New World Makati Hotel. Mandarin Oriental Makati is also targeted to open in December 2026.
Residential conditions improve
Residential conditions are showing improvement as ALI focuses on deliveries and bringing down inventory. The company is on track for deliveries across 40 projects, with close to 6,000 residential units turned over to date. Residential inventory improved to 15 months from 18 months in the first quarter.
“For property development, this year is about delivering to our buyers and working down our inventory,” Dy said.
ALI is gradually restarting launches, with around P5 billion across three horizontal residential projects planned for the second half of 2026.
Discipline while rebuilding growth
At the same time, capital discipline remains central to the company’s strategy. First-half capital expenditures stood at P39.5 billion, down 2% year-on-year, although investments in leasing and hospitality increased 17% to P13.2 billion.
“We continue to prudently manage our yearly maturity levels, ensuring that debt maturities are at about 10% of total debt on the average,” said Jose Eduardo A. Quimpo II, Ayala Land chief financial officer and treasurer.
ALI had completed around 96% of its 2026 refinancing requirements by the end of the first half. Its balance sheet remained within internal guardrails, with a net debt-to-equity ratio of 0.80 and an interest coverage ratio of 4.4.
For Dy, the focus now shifts from stabilization toward rebuilding momentum.
“We enter the second half with a stronger control of the business and confidence in the enduring advantages of the portfolio, our estates and our people,” she said. “Our task now is to sustain the progress, rebuild this momentum, and translate Ayala Land’s strengths into improved performance and long-term value.”
The article was originally published in PhilStar Property and written by Pamela Imperial.
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