Ayala Land enters next phase with leasing pivot, delivery focus
By Rey Ilagan
With this tempered approach is a shift that has been quietly building over time. “When we started 2026, the strategy was clear. We said we will really pivot to leasing, so we’re very aggressive in growing our recurring income business,” Dy emphasized.
Retail leads this shift, with destinations across Ayala Land’s estates reinforcing its long-standing development model. Early indicators are promising: ALI is already seeing a 12 percent increase, even with only two of the four major mall redevelopments fully completed: TriNoma and Ayala Center Cebu. Greenbelt and Glorietta are set for completion soon.
ALI, according to Dy, remains committed to investing in more than one million sqm of gross leasable area (GLA) in its pipeline. This year alone is shaping up to be a banner one for retail, with about 200,000 sqm of new GLA coming onstream. Leading the rollout is Arca South, which formally opened this month, followed by Evo City, Nuvali, and Gatewalk in Mandaue City, each reinforcing Ayala Land’s push to expand and activate its estates. ALI is also adding around 70,000 sqm of office GLA.
On the hospitality front, Ayala Land completed the renovation of several Seda hotels, along with Holiday Inn and Suites Makati and Lagen Island Resort, all of which are now fully operational after being closed for much of last year. The payoff is already evident: Hotel revenues have rebounded strongly and are now on par with office income. The addition of New World Hotel has further strengthened the segment, with Mandarin Oriental set to open in December.
Ayala Land is also quietly building up its industrial segment. While still a smaller part of the portfolio, it is showing strong momentum, with around 20 percent growth in both dry warehouses and cold storage.
“Our goal is to pivot and grow our recurring income. At the same time, we aim to build one of the most diversified leasing portfolios spanning retail, office, hospitality, and industrial,” Dy said. Ultimately, this portfolio will sit within ALI’s estates, reinforcing what has always been at the core of its strategy: the Estates story.
Execution mode
Property development remains steady, but with a clear shift in focus: monetization over expansion. Ayala Land is sitting on approximately P130 billion worth of inventory, much of it in the premium segment.
“We’re very much in execution mode this year,” Dy said. “Our focus is really on two things. First, to monetize the inventory that we have, it’s about P130 billion. If we do our job, that should be enough to ensure we retain our market leadership position in that segment for at least two years.”
Equally important is delivery. This year, Ayala Land is targeting the completion of 40 projects, equivalent to around 13,000 residential units. “We want our organization to ensure these are accomplished, because these are commitments to our buyers and, at the same time, the cash flows that the company will rely on,” Dy stressed, reframing the conversation away from launches toward delivery and completion.
Laurean Residences on pause
Perhaps the most telling move is the decision to pause the Laurean project, a significant development that, under different conditions, would have moved forward. As Dy pointed out, construction has yet to begin, giving the company a critical window to reassess its next steps. For now, Ayala Land has chosen to hold back and wait for greater market clarity.
“It’s not a small commitment,” Dy said. “Given all this uncertainty, we didn’t feel that we could, in good faith, go into new agreements.”
Instead, Ayala Land is prioritizing trust. Buyers are given three options: a full refund with interest, a transfer to another Ayala Land project under favorable terms, or the option to keep their investment while both sides wait for clearer conditions without a firm timetable for the project’s resumption. “The important thing is we engage early and that we’re transparent. We think, in the end, that’s really going to be the basis of trust,” she added.