Ayala Land net income rises 32% to P24.5B

LISTED Ayala Land, Inc. (ALI) recorded a 32% jump in its 2023 net income to P24.5 billion led by strong property demand and consumer activity.

Its consolidated revenue increased by 18% to P148.9 billion, the property developer said in a regulatory filing on Tuesday.

The company’s property development revenues rose by 14% to P92.3 billion led by “steady bookings” and higher completion of residential projects and offices for sale. Residential reservation sales increased by 9% to P113.9 billion.

ALI launched 25 projects worth P75.9 billion in 2023.

In the fourth quarter alone, the company unveiled 14 projects valued at P39.6 billion. These projects include ALI Premier’s first signature line project, Park Villas in the Makati central business district (CBD), and sequel phases of its existing gated community developments.

The property developer logged a 25% increase in leasing and hospitality revenues to P41.7 billion on the back of better occupancy and rents.

Broken down, the company’s shopping center revenue increased by 31% to P21.1 billion while office leasing revenue climbed by 6% to P11.8 billion, and hotel and resort revenues rose by 42% to P8.8 billion carried by higher travel and tourism demand.

“ALI opened Ayala Malls One Ayala at the Makati CBD and the first phase of Ayala Malls Vermosa in Cavite, adding 49,000 square meters of retail space; Seda Manila Bay and the second tower of Seda Nuvali with 420 hotel rooms,” it said.

Revenue from service businesses in construction, property management, and airlines rose by 36% to P11.5 billion. Net construction revenue of Makati Development Corp. from external projects rose by 56% to P6.6 billion.

In 2023, ALI unveiled four new estate consisting of the 55-hectare Batangas Technopark at Padre Garcia, the 32-hectare Centrala at Angeles City, Pampanga, the 800-hectare Southmont at Silang, Cavite, and the 62-hectare Arillo at Nasugbu, Batangas.

“ALI was well-positioned to take advantage of opportunities from an improving market in 2023, enabling us to meet our objectives for the year,” ALI President and Chief Executive Officer Anna Ma. Margarita Bautista-Dy said.

“With our focus on quality, we look forward to bringing more high-value development products to market and embarking on the reinvention of our malls, hotels, and resorts for our customers to enjoy,” she added.

In a separate stock exchange disclosure on Tuesday, ALI said its board approved a plan to raise up to P50 billion in debt capital via the issuance of retail bonds and/or corporate notes, and/or execution of bilateral term loans.

The funding will be used to partially finance general corporate requirements and refinance maturing debt.

ALI Chief Finance Officer Augusto D. Bengzon said during a briefing in Makati City on Tuesday that P25 billion would be used to finance the company’s capital expenditure while P25 billion will be for refinancing of maturing debt.

“We intend to access both our bank lines as well as the debt capital markets, roughly 50-50…. Most of, if not all, of the maturities will happen in the second half and we will be able to finance our new requirements in the first half of the year by drawing down on our short term lines,” Mr. Bengzon said.

“The strategy is to access our long term bank lines as well as the debt capital markets in the second half of the year as we anticipate that by that time, rates should start trending downwards, so we have that flexibility to trigger a major part of our financing program in the second half of the year when hopefully, rates would have moderated,” he added.

ALI shares rose 2.8% or 95 centavos to P34.90 apiece on Tuesday. — Revin Mikhael D. Ochave