ALI 1Q23 net income up 42% to P4.5B

Ayala Land, Inc. (ALI) started 2023 on a strong note, delivering solid growth in the first quarter of the year. Its diversified real-estate portfolio generated consolidated revenues of P30.9 billion, marking an increase of 26% year-on-year, and net income showed significant growth of 42%, reaching P4.5 billion.

Despite the prevailing higher interest-rate environment, residential demand remained resilient, resulting in P27.7 billion in gross reservation sales, representing a 15% increase compared to last year. 68% of the sales were to Local Filipinos, 13% higher than a year ago. Meanwhile, sales to overseas Filipinos were almost the same as last year, while sales to other nationalities surged by 61%. They accounted for 19% and 13% of the total, respectively. AyalaLand Premier’s (ALP) Ciela in Cavite, Parklinks South Tower in Quezon City, ALP’s Arcilo and Avida’s Southdale Settings, both in Nuvali and Alveo’s The Lattice, also in Parklinks were the projects that received the most demand during the period. ALI launched three projects worth close to P9 billion during the quarter.

Property development revenues increased by 8% to P17.1 billion, driven by higher residential completions, bookings, and the sale of office units. Residential revenues reached P14.2 billion, a 10% improvement on higher completion and net bookings. Meanwhile, office-for-sale revenues registered a 43% growth from last year, owing to sales from One Vertis Plaza in Quezon City. On the other hand, revenues from commercial and industrial lots declined by 19% to P1.8 billion due to sales timing as ALI plans to offer more commercial lots in the market in the following quarters.

In commercial leasing, revenues surged by 57% to P10.1 billion from higher occupancy and rental rates, buoyed by improving mall tenant sales, steady BPO demand, and a resurgence in travel. The improvement in mall tenant sales lifted occupancy and rents, which led to a 71% growth in shopping center revenues totaling P5.0 billion. Moreover, the stable demand for office spaces in prime locations supported higher tenancy and rents resulting in office revenues growing by 8% to P2.9 billion. Notably, hotel and resort revenues expanded by 164% to P2.2 billion as occupancy and room rates rose due to the increase in local and foreign travelers.

Our results in the first quarter of 2023 set a solid foundation for our continued growth, and we look forward to building on this momentum as the year progresses. All our business lines showed progress, demonstrating market stability in the property sector,” said ALI President and CEO Bernard Vincent O. Dy. “We remain optimistic about the sustained expansion of our businesses this year, fueled by supportive economic drivers and the strength of the Philippine economy,” he added.

Capital expenditures totaled P19.5 billion to bolster its residential and commercial projects. ALI spent 61% on residential projects, 5% on commercial leasing, 8% on land acquisition, 15% on estate development, and 1% on other general uses. ALI has a well-managed debt portfolio, with 91% contracted into long-term tenors, 84% locked in fixed rates, and an average maturity of 4.3 years. The net gearing ratio stands at 0.77:1, ensuring the company maintains the highest investment-grade rating in the domestic debt market.