Property giant Ayala Land Inc. (ALI) of the Zobels posted a 32 percent growth in net income to P24.5 billion in 2023, fueled by robust property demand and heightened consumer activity.
In a media and analysts’ briefing Tuesday, Feb. 20, ALI Chief Finance Officer Augusto Bengzon said consolidated revenues also increased by 18 percent to P148.9 billion from 2022.
Property development revenues expanded by 14 percent to P92.3 billion, driven by steady bookings and higher completion of residential projects and offices for sale. Residential reservation sales grew by nine percent year-on-year to P113.9 billion.
ALI is also planning to raise up to P50 billion in debt capital this year and Bengzon said this will be done through the issuance of retail bonds or corporate notes for listing on the Philippine Dealing and Exchange Corporation, and execution of bilateral term loans.
“We intend to access both our bank lines as well as the debt capital markets, roughly 50-50. Of the total of P50 billion, P25 billion will be to finance our capex this year and the other P25 billion is for refinancing of maturing debt,” he noted.
Bengzon added that “most of that, 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."
“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," he also said.
“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. We want to borrow long term fixed rate. it is important for us to try to get the financing at the opportune time," noted Bengzon.
“Ayala Land was well-positioned to take advantage of opportunities from an improving market in 2023, enabling us to meet our objectives for the year," said ALI President and CEO Anna Ma. Margarita Bautista-Dy.
She said that “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."
Ayala Land launched 14 projects in the fourth quarter of 2023 with a combined value of P39.6 billion. These include AyalaLand Premier’s first signature line project, Park Villas in the Makati CBD, and sequel phases of its existing gated community developments.
These new projects brought Ayala Land’s total launches to 25 projects valued at P75.9 billion in 2023.
Meanwhile, leasing and hospitality revenues accelerated by 25 percent year-on-year to P41.7 billion due to improved occupancy and rents.
Shopping center revenues surged 31 percent to P21.1 billion, while office leasing grew six percent to P11.8 billion. Hotel and resort revenues increased by 42 percent to P8.8 billion as higher travel and tourism demand pushed up occupancy and room rates.
Ayala Land opened Ayala Malls One Ayala at the Makati CBD and the first phase of Ayala Malls Vermosa in Cavite, adding 49,000 sqm of retail space; Seda Manila Bay and the second tower of Seda Nuvali with 420 hotel rooms.
Service businesses composed mainly of construction, property management, and airlines registered a 36 percent growth to P11.5 billion. Makati Development Corporation’s net construction revenues from external projects scaled up by 56 percent to P6.6 billion.
Ayala Land launched four new estates in 2023: the 55-hectare Batangas Technopark at Padre Garcia; the 32-ha Centrala at Angeles City, Pampanga; 800-ha Southmont at Silang, Cavite; and the 62-ha Arillo at Nasugbu, Batangas.
The firm said these new estates will catalyze new communities and economic activity, solidifying Ayala Land’s presence in the country's high-growth corridors.