Ayala Land Inc. (ALI) continues to maintain its position as one of the largest property developers in the Philippines as it reported a total net income of P18.4 billion, up 38% year-on-year, and consolidated revenues of P98.9 billion, 15% higher year-on-year in the first nine months of 2023. This commendable performance reflects the resilience of the residential market and strong consumer engagement, despite prevailing macroeconomic challenges.
ALI’s official report highlights a 4% growth in property development revenues, totaling P57.2 billion. This uptick is attributed to increased residential completions, stable bookings, and office unit sales. Residential revenues rose by 4% to P47.5 billion, with office-for-sale revenues experiencing an impressive 31% surge, reaching P2.8 billion. Meanwhile, revenues from commercial and industrial lots totaled P6.9 billion, reflecting an 8% decrease compared to the previous year.
Residential sales reservations in the first three quarters marked an 11% year-on-year increase, amounting to P85.9 billion. Third-quarter sales reached P27.6 billion, adding to the P58.3 billion sales generated in the first half. Notable contributors to this success include in-demand projects such as Alveo’s Park East Place in BGC, AyalaLand Premier’s Ciela in Carmona, Cavite, Arcilo in Nuvali, Laguna, and Parklinks South Tower in Quezon City, alongside Avida Towers Makati Southpoint.
Commercial leasing revenues demonstrated significant growth, rising by 32% to P30.8 billion, driven by improved occupancy and rents. Shopping center revenues notably surged by 40%, reaching P15.7 billion, thanks to heightened occupancy and increased rents resulting from robust operations. Office leasing revenues also saw a 7% increase, totaling P8.8 billion, supported by stable occupancy and higher rents from a solid BPO and corporate tenant base. Hotel and resort revenues experienced a remarkable 62% jump from the previous year, reaching P6.3 billion, propelled by increased domestic business travel and local tourist activity.
Ayala Land launched five new projects in the third quarter, valued at a combined P4.4 billion. These include AyalaLand Premier’s Ayala Greenfield Estates Parkside Terraces Tranche 2, Andacillo Tranche 5, and Lanewood Hills Phase 3 Batch 3, Avida’s Solara Park Storeys (its first mid-rise condominium offering in Nuvali), and Amaia’s Scapes Cabuyao Sector 4. These additions bring the total launches for the year to 11 projects with a cumulative value of P36.3 billion.
In September 2023, Ayala Land introduced the 789-hectare Southmont Estate in Silang Cavite, marking its 50th estate nationwide. Positioned as an “Elevated Modern Suburb,” Southmont offers direct access to the Cavite-Laguna Expressway (CALAX) through the Silang East Interchange. The estate, with an initial development cost of P12 billion, will feature a 3-hectare sports club and Chang Kai Shek College.
With capital expenditures reaching P57.6 billion, ALI allocated 54% to residential projects, 9% to commercial projects, 18% to land acquisition, 17% to estate development, and 2% for other purposes. The company maintains a well-managed debt portfolio, boasting an average maturity of 4.6 years, with 93% contracted into long-term tenors and 84% at locked-in fixed rates. The net gearing ratio stands at 0.75:1, and the interest coverage ratio is 4.4x.
On October 25, 2023, Ayala Land’s Board of Directors approved the declaration of regular cash dividends of P0.2231 per share for the second half of 2023. The record date is November 13, 2023, and the payment date is scheduled for November 24, 2023.
“The strong performance of our various business lines in the first nine months of 2023 is a testament to the continuing resilience of the residential market and vibrant consumer activity despite ongoing macroeconomic challenges. This positive trend, guided by our new focus on quality, people, sustainability, and growth, will enable us to strengthen our diversified portfolio and further enhance earnings,” said ALI President and CEO Ms. Anna Ma. Margarita Bautista-Dy.
“We will continue to focus on high-value market opportunities and meeting our operating targets to sustain our momentum for the year,” she added.
