Ayala Land leans on leasing, project deliveries amid uncertainties
Amid the uncertainties fueled by the Middle East crisis, Ayala Land Inc. is staying on top of its game by making the harder call.
The property giant recently had to hit pause on a high profile project and cancel another development as construction costs, supply chains, and execution timelines became harder to predict amid local and external headwinds. While the move may look like caution, it actually forms part of a broader game plan that company officials said has been already in place even before this latest geopolitical shock.
A clear game plan
In an interview with media, Ayala Land president and CEO Anna Ma. Margarita B. Dy said the company entered the year with a strategy that rests on three legs: a stronger pivot to leasing, stable and prudent property development, and balance sheet discipline through active portfolio management. That game plan, she stressed, has only become more relevant now as inflation, interest rates, fuel prices, and construction risks cloud market sentiment.
“When we started 2026, the strategy was clear. We said, we will really pivot to leasing. So we’re really very aggressive in growing our recurring income business,” Dy said.
“But we also said we’ll keep our property development business stable. In fact, we were saying we will really focus on monetizing our inventory more than (having) aggressive launches. Then the third is all about managing our portfolio and our balance sheet. We said we (will) actively manage our portfolios, which means there will be assets that we would buy, we would sell, we would enhance,” she explained.
Execution mode
As it is, Ayala Land earlier announced that it had cut its planned launches for 2026 to about P30 billion from the previous P70 billion. Any additional launches, Dy said, will be reviewed in the second half. And if so, the priority would likely be horizontal projects.
She, however, emphasized that the company is not pulling back from property development as they will be on “full execution mode” this year.
“We have 40 projects to deliver this year–13,000 units that are due for turnover to our buyers this year,” Dy said.
And this is vital. While launches admittedly create the headlines, turnovers provide the necessary cash flow, strengthen buyers’ trust, and serve as a tangible proof of execution.
“I know we always talk about launches, but bulk of our work is actually in the delivery and completion. Now, we’re very much in execution mode. This is our commitment to our buyers. It’s also important for our cash flow,” she added.
That execution pipeline is likewise backed by a sizable inventory base that should further strengthen and retain Ayala Land’s leadership in the residential market. Dy said Ayala Land still has about P130 billion worth of inventory, excluding Laurean Residences, the ultra luxury residential development that was put on hold.
Why Laurean was paused
Dy explained that construction for Laurean Residences hasn’t started yet, giving Ayala Land a window to reassess before making a major commitment. The company weighed two options: proceed despite uncertainty in costs, delivery timelines and supply chains, or step back and revisit the project once conditions became clearer.
It chose the latter, judging that such a large investment would not be prudent amid a still unfolding crisis.
“Given all the uncertainty, we didn’t feel that we could, in good faith, go to any new agreement with any new buyer,” Dy said.
Existing buyers are being offered three options: a refund with interest, a transfer to another Ayala Land project on good terms, or the option to wait until conditions become clearer.
Leasing as the next growth engine
While Ayala Land is more cautious on new residential launches, it is moving full speed on leasing.
Dy said the company’s leasing pipeline remains intact, with Ayala Land continuing to invest in more than 1 million sqm of gross leasable area (GLA). Retail will be a major part of this push, as more than 200,000 sqm of GLA are set to open this year. This includes retail spaces in Arca South, Nuvali, Evo City and Gatewalk in Mandaue, Cebu. These projects are tied to Ayala Land’s estate model, where malls, offices, homes, hotels, transport links and public spaces are designed to reinforce one another.
Meanwhile, Ayala Land is beginning to see gains from its flagship mall redevelopment program. Dy said two of the four flagship malls–TriNoma and Ayala Center Cebu–have already completed redevelopment, while Glorietta and Greenbelt are set for completion by June.
Ayala Land is likewise expecting growth in its hospitality and industrial businesses as well.
Despite its prudent stance on project development, Ayala Land is still poised to complete and deliver 40 projects comprising 13,000 units. It has sought to reduce launch risk, but still has P130 billion in inventory. It remains cautious on new vertical developments, but it is moving full speed on its leasing business.
Essentially, Ayala Land hit pause on one project and cancelled another to power ahead.
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