Ayala Land Inc. (ALI), the largest property developer in the Philippines with over 11,000 hectares and 52 estates nationwide, saw a significant rise in Filipino investment in both residential and commercial properties in the first half of 2024. This surge reflects strong confidence in the stability and potential of these investments.
The company’s 15 percent increase in net income in the first half of 2024 to P13.1 billion underscores its success in providing quality living and business spaces. ALI’s achievements reinforce its legacy of developing large-scale, sustainable estates while adhering to global standards.
With P36.5 billion in capital expenditures—51 percent for residential projects, 27 percent for estate development, 11 percent for commercial leasing, and 11 percent for land acquisitions—Ayala Land ended the semester with a healthy net gearing ratio of 0.73:1 and a strong interest coverage ratio of 4.7x. Additionally, the company declared dividends of P0.2050 per share, totaling P3.1 billion in March 2024. Combined with P4.9 billion in share buybacks by June 2024, Ayala Land returned P8.0 billion to shareholders, representing 33% of its P24.5 billion net income for 2023.
Anna Ma. Margarita Bautista-Dy, ALI president and CEO, highlighted how Ayala Land is exceeding its growth goals and shaping the market with standout residential offerings. “Ayala Land is hitting its growth targets across all business lines and market segments. Residential sales outperformed expectations. We will continue to pursue our growth trajectory with a keen eye on capital efficiency.”
She added, “We are reinventing our assets to deliver elevated and differentiated experiences to our customers, and we will continue to bring compelling and market-shaping residential offerings to Filipino homeowners.”
Rise in demand for residential market
The rise in residential revenues by 40 percent to P43.7 billion highlights Filipinos' desire for more than just a house; they seek homes that offer lifestyle, community, and belonging. Developments like AyalaLand Premier’s Park Villas in Makati CBD, The Courtyards Phase 3 in Vermosa, Alveo’s Park East Place in BGC, Sereneo in Nuvali, and Avida’s Verge Tower 1 in Mandaluyong are not just properties but destinations where families can thrive. This demand is further reflected by a 17 percent rise in residential reservation sales, reaching P68.4 billion.
ALI’s commitment to reinventing its assets to deliver exceptional experiences is evident in its diverse portfolio. Premium and vertical developments, such as ALP’s Miravera Phase 2 in Altaraza, Bulacan; Anvaya Seabridge Residences Building A in Bataan; Alveo’s Orean Place Tower 3 in Vertis North, Quezon City; South Palmgrove Phase 2 in Lipa, Batangas; and Amaia’s Scapes Iloilo Sector 2B, exemplify ALI’s dedication to creating spaces that are functional and enriching. These projects are more than buildings; they are thoughtfully crafted communities where life unfolds.
Commercial projects and sustainability efforts
Ayala Land’s success is also reflected in its commercial and leisure spaces. A 10 percent increase in leasing and hospitality revenues to P22.1 billion shows how ALI’s properties, like Ayala Malls Manila Bay, One Ayala Mall and offices, Ayala Triangle Tower Two, Seda Manila Bay, Seda Nuvali, and Lio, have become vibrant hubs for modern living, catering to needs from shopping and dining to relaxation and connection.
The company’s service businesses grew 51 percent to P8.4 billion, driven by Makati Development Corporation’s construction revenue doubling to P5.5 billion from new contracts. AirSWIFT and other services contributed an additional P2.9 billion, a 2 percent increase, mainly from airline sales and property management fees.
ALI’s pioneering Sustainability-Linked Financing (SLF) Program, which secured P20.5 billion in debt, underscores its commitment to sustainable development. The funding package includes a P6 billion Sustainability-Linked Bond (SL-Bond), listed on the Philippine Dealing and Exchange Corp. (PDEx), and a P14.5 billion Sustainability-Linked Loan (SL-Loan) from the International Finance Corporation (IFC). This initiative, verified by Det Norske Veritas, is not just about building for today but ensuring that projects positively impact future generations.
Ultimately, Ayala Land’s story is one of creating homes where dreams are nurtured, communities where connections are made, and spaces where life’s most meaningful moments happen. As ALI continues to innovate and grow, it remains focused on crafting the future of Filipino living.