Ayala Land accelerating leasing portfolio buildout

Accelerating Leasing Portfolio Buildout Ayala Land's Evolutionary Journe
Journey

As one of the leading real estate developers in the Philippines, Ayala Land
Land Inc. is shifting its focus towards accelerating the buildout of its le
leasing portfolio, with a long-term plan to reinforce recurring income as a
a core earnings driver.

A New Era of Capital Allocation

Under President and CEO Anna Ma. Margarita Bautista-Dy's leadership, the co
company has prioritized capital spending on leasing assets, recognizing the
the potential for growth and stability. This strategic pivot is part of a m
multi-year plan to reposition Ayala Land's business, with careful execution
execution being crucial.

Aggressive Pipeline of New Projects

This year alone, Ayala Land is set to deliver approximately 270,000 square 
meters of new leasing space, including 200,000 square meters of malls and 7
70,000 square meters of offices. This represents one of the largest annual 
expansions in the company's history.

Ongoing Expansion

Dy emphasized that the rollout will continue steadily over the next three t
to five years, with a goal to add more than one million square meters of le
leasing gross floor area over a five-year horizon. The company is leveragin
leveraging its existing estates to drive growth, ensuring minimal disruptio
disruption and maximum returns.

Enhancing Commercial Assets

In addition to new capacity, Ayala Land is sustaining upgrades across its c
commercial assets. Renovations of flagship malls are nearing completion thi
this year, with the focus shifting to enhancing the rest of the portfolio's
portfolio's network of over 30 malls.

Financial Strength Supporting Growth

Ayala Land highlighted its strong financial position in support of its leas
leasing business push. The company reported a net debt-to-equity ratio of a
around 0.8 times and interest coverage of over four times, with total debt 
of approximately P300 billion backed by a roughly P1-trillion asset base as
as of end-2025.

Capital Recycling

Chief Finance Officer and Treasurer Jed Quimpo emphasized the importance of
of capital recycling in supporting growth while maintaining balance sheet f
flexibility. The company continuously unlocks value while retaining exposur
exposure to quality income streams, regularly reviewing assets for reinvest
reinvestment into higher-return opportunities.

A More Stable Earnings Mix

The expansion of leasing assets is expected to support a more stable earnin
earnings mix, complementing Ayala Land's residential business, bolstered by
by disciplined launches and sustained demand in key estates. The company is
is targeting the delivery of approximately 13,000 residential units this ye
year, including roughly P124 billion worth of turnovers in the premium segm
segment.

Conclusion

As Ayala Land accelerates its leasing portfolio buildout, management is pos
positioning the business to generate more predictable cash flows while main
maintaining flexibility to adjust investments in response to shifting marke
market conditions. The company's shares may fluctuate in response to these 
developments, but one thing is clear Ayala Land is committed to delivering
delivering long-term value for its stakeholders.

Keywords Ayala Land, leasing portfolio buildout, capital allocation, n
new projects, commercial assets, financial strength, capital recycling, ear
earnings mix.

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Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.