ALI 1H23 net income up 41% to P11.4B; presales up 18%

Ayala Land Inc. (ALI) delivered solid operational results in the first half of 2023, fueled by the sustained resilience of the property market and consumer activity despite prevailing macroeconomic concerns. With consecutive growth in the first two quarters of the year, ALI posted a total net income of P11.4 billion, up 41% year-on-year. In the second quarter, net income amounted to P6.9 billion, 52% more than the first quarter of 2023. Consolidated revenues registered at P66.0 billion in the first half, 24% higher year-on-year, as second-quarter revenues reached P35.1 billion, 14% better than the first quarter of 2023.

ALI grew its property development revenues by 13% to P38.7 billion from higher residential project completion, bookings, and sales of commercial and industrial lots and office units. Residential revenues increased by 14% to P31.2 billion, while office-for-sale revenues rose by 44%. Revenues from commercial and industrial lots totaled P5.4 billion, similar to last year. Property development revenues totaled P21.7 billion in the second quarter, a 27% uplift from the first quarter of 2023.

Residential sales reservations in the first semester of 2023 increased by 18% year-on-year to P58.3 billion, as second-quarter sales reached P30.6 billion, 10% more than the previous quarter. Sales were driven by Alveo’s Park East Place in BGC, AyalaLand Premier’s (ALP) Ciela in Carmona, Cavite, Arcilo in Nuvali, Laguna, and Parklinks South Tower in Quezon City, and Avida Towers Makati Southpoint.

Three new projects with a combined value of P23.3 billion were launched to the market in the second quarter, namely, Alveo’s Park East Place in BGC, the second tranche of ALP’s Arcilo in Nuvali, and Amaia’s Steps The Junction Place Delicia in Quezon City. These developments bring Ayala Land’s total launch value to P31.9 billion in the first half of the year.

Commercial leasing revenues improved by 39% year-on-year to P20.2 billion due to higher occupancy and rents. Shopping center revenues surged by 49% to P10.2 billion, while office leasing revenues increased by 8% to P5.8 billion. Meanwhile, hotel and resort revenues advanced by 79% to P4.2 billion. Commercial leasing revenues totaled P10.1 billion in the second quarter, similar to the first quarter of 2023.

Capital expenditures reached P38.7 billion, wherein 55% was spent on residential projects, 11% on commercial projects, 15% on land acquisition, 14% on estate development, and 3% on other purposes. ALI has a well-managed debt portfolio with an average maturity of 4.6 years, 95% contracted into long-term tenors, and 86% locked-in fixed rates. The net gearing ratio is 0.75:1, reflecting ALI’s high investment-grade rating in the domestic debt market.

ALI successfully listed its P15 billion fixed-rate bonds due 2028 and 2033 at the Philippine Dealing and Exchange Corporation (PDEX) last June 26, 2023. The bonds due in 2028, totaling P10.1 billion carry a coupon rate of 6.0253% per annum (p.a.), while the bonds due in 2033 of P4.9 billion have a coupon rate of 6.2948% p.a. The net proceeds will be used to support ALI’s capital expenditures.