MAKATI CITY — Ayala Land, Inc. (ALI) is beginning to see stronger operating results from its reinvestment in its flagship shopping centers, following the completion of major reinvention works across four key malls. As of the end of June 2026, ALI's shopping center portfolio recorded a 90 percent lease-out rate, up from 87 percent during the same period a year earlier. Same-mall revenues rose 7 percent, while visitor footfall increased 5 percent, with the mall portfolio maintaining a healthy 61 percent EBITDA margin. The company attributed the gains to improved occupancy, stronger merchant sales, and the early benefits generated by the completed mall reinvention projects.
Glorietta Completes Major Transformation
Among the flagship properties undergoing reinvention is Glorietta, which has completed its latest physical transformation after its previous major renovation in 2012. The refreshed mall now features updated cinema interiors and redesigned décor across various areas. One of the most visible changes is a new pedestrian park connecting the exterior portion of Glorietta 3, replacing the former car mall entrance. The reinvention program began in 2024 and covered four flagship destinations: Glorietta, Greenbelt, TriNoma, and Ayala Center Cebu. Major physical improvements across the portfolio are now largely complete.
Mall Strategy Shifts Toward Merchant Replacement
With much of the physical work finished, ALI is moving into what it describes as the “merchant replacement phase.” This stage focuses on reshaping the tenant mix by introducing new shops, restaurants, and other concepts that respond to changing consumer preferences. Properties where stores and concepts have already been replaced or refreshed have recorded average rental-rate increases of around 25 percent. Ayala Center Cebu, which is the most advanced among the four flagship reinventions, is already registering approximately 10 percent year-on-year growth in rental rates. Mariana Zobel de Ayala, Head of Leasing and Hospitality of Ayala Land, said the reinvention is intended to keep the company's malls relevant as customer preferences and the retail landscape continue to change. She added that the next focus is on improving the overall customer experience, supporting tenants, and sustaining the long-term performance and value of the properties.
Next Wave of Mall Upgrades and Retail Growth
ALI's mall reinvention strategy will extend beyond its four flagship properties. The company is preparing another round of upgrades involving Ayala Malls Abreeza, Ayala Malls MarQuee, and Ayala Malls Cloverleaf, which are moving into the next phase of reinvention. The company is also expanding its retail footprint through new developments. Ayala Malls Arca South has already been launched, while Ayala Malls Gatewalk in Mandaue City, Cebu is scheduled to open in December 2026. ALI expects to deliver approximately 200,000 square meters of new retail gross leasable area this year, combining mall reinvention with new retail expansion as part of its broader strategy to strengthen its shopping center portfolio.
