ALI 1H24 net income up 15% to P13.1B

7 Aug 2024 – Ayala Land, Inc. (ALI) achieved strong results in the first half of 2024, fueled by progressive property demand and robust consumer activity. ALI’s net income grew 15% to P13.1 billion from the same period in 2023 as consolidated revenues increased to P84.3 billion.

Property development revenues increased 34% to P51.9 billion, driven by higher residential and commercial lot bookings. Residential revenues surged 40% to P43.7 billion, and revenues from commercial and industrial lots jumped 19% to P6.3 billion. Meanwhile, office-for-sale revenues registered a 15% decline to P1.8 billion as lower incremental percentage of completion of projects offset new bookings.

Residential reservation sales in the first semester increased by 17% year-on-year to P68.4 billion, as second-quarter sales grew 15% year-on-year to P35 billion, led by the premium and vertical segments. Ayala Land’s sales performance for the period translated to a monthly average of P11.4 billion—an acceleration from P9.5 billion in 2023. AyalaLand Premier’s (ALP) Park Villas in Makati CBD and The Courtyards Phase 3 in Vermosa, Alveo’s Park East Place in BGC, and Sereneo in Nuvali, and Avida’s Verge Tower 1 in Mandaluyong drove the sales performance during the period.

Ayala Land launched projects worth P33.7 billion, wherein 92% were from premium brands and 52% were horizontal developments. Notable projects launched in the second quarter were 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 and South Palmgrove Phase 2 in Lipa, Batangas; and Amaia’s Scapes Iloilo Sector 2B.

Meanwhile, leasing and hospitality revenues increased by 10% to P22.1 billion, owing to the higher occupancy of Ayala Malls Manila Bay, the contribution of One Ayala Mall and Offices, Ayala Triangle Tower Two, Seda Manila Bay, and the higher occupancy of Seda Nuvali and Lio. Shopping center revenues grew by 8% to P11.1 billion, while office leasing improved by 6% to P6.1 billion. Furthermore, hotel and resort revenues accelerated by 19% to P5.0 billion.

Service businesses composed of construction, property management, and airlines, among others, registered a 51% growth to P8.4 billion. Makati Development Corporation’s net construction revenues reached P5.5 billion, double last year’s figure on account of additional contracts from external projects. AirSWIFT, Property Management, and retail electricity supply companies generated revenues of P2.9 billion, a 2% increase year-on-year, mainly from airline sales and property management fees.

“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,” said ALI President and CEO Ms. Anna Ma. Margarita Bautista-Dy.

“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,” she added.

Capital expenditures totaled P36.5 billion, of which 51% were spent on residential projects, 27% on estate development, 11% on commercial leasing assets, and 11% on land acquisition commitments.

At the end of the semester, ALI's net gearing ratio is at a healthy 0.73:1, while the interest coverage ratio is strong at 4.7x.

Ayala Land declared dividends of P0.2050 per share to stockholders, equivalent to P3.1 billion last March 2024. Combined with P4.9 billion in share buybacks as of June 2024, the company has returned P8.0 billion in capital to its shareholders, equivalent to 33% of its P24.5 billion net income in 2023.

On July 18, ALI successfully closed P20.5 billion in debt through its pioneering Sustainability-Linked Financing (SLF) Program. The funding package includes a P6 billion Sustainability-Linked Bond (SL-Bond), which was 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 marks a first for the Philippine real estate sector, adhering to international guidelines and independently verified by Det Norske Veritas.