ALI 9M23 net income up 38% to P18.4B

Ayala Land Inc. (ALI) maintained a strong growth trend in the first nine months of 2023, driven by the continuing resilience of the residential market and vibrant consumer activity despite ongoing macroeconomic challenges. ALI posted 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.

ALI grew its property development revenues by 4% to P57.2 billion from higher residential completion, stable bookings, and office unit sales. Residential revenues increased by 4% to P47.5 billion, while office-for-sale revenues registered a 31% growth from last year to P2.8 billion. Meanwhile, revenues from commercial and industrial lots totaled P6.9 billion, 8% less than last year.

Residential sales reservations in the first nine months increased by 11% year-on-year to P85.9 billion. Third-quarter sales reached P27.6 billion, adding to the P58.3 billion sales generated in the first half. The in-demand projects during the period were 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.

Ayala Land launched five new projects in the in the third quarter with a combined value of P4.4 billion, namely: AyalaLand Premier’s Ayala Greenfield Estates Parkside Terraces Tranche 2, Andacillo Tranche 5, and Lanewood Hills Phase 3 Batch 3, Avida’s first mid-rise condominium offering in Nuvali, Solara Park Storeys, and Amaia’s Scapes Cabuyao Sector 4.  These developments bring Ayala Land’s total launches to 11 projects valued at P36.3 billion.

Commercial leasing revenues were 32% higher year-on-year to P30.8 billion due to improving occupancy and rents. Shopping center revenues reached P15.7 billion, 40% better than a year ago, on account of higher occupancy and rents due to healthy operations. Office leasing revenues grew 7% to P8.8 billion due to stable occupancy and higher rents from its solid BPO and corporate tenant base. Meanwhile, hotel and resort revenues significantly jumped by 62% from last year to P6.3 billion due to higher domestic business travel and local tourist activity, which pushed up occupancy and room rates.

Ayala Land launched the 789-hectare Southmont Estate in Silang Cavite last September, bringing its total count to 50 estates nationwide. Southmont is positioned as an “Elevated Modern Suburb” with direct access to the Cavite-Laguna Expressway or CALAX through the Silang East Interchange. It will also host a 3-hectare sports club, and Chang Kai Shek College. The estate will have an initial development cost of P12 billion.

Capital expenditures reached P57.6 billion, wherein 54% was spent on residential projects, 9% on commercial projects, 18% on land acquisition, 17% on estate development, and 2% for other purposes. ALI has a well-managed debt portfolio with an average maturity of 4.6 years, 93% contracted into long-term tenors, and 84% locked-in fixed rates. The net gearing ratio stands at 0.75:1, while the interest coverage ratio is 4.4x.  

Last October 25, 2023, Ayala Land’s Board of Directors approved the declaration of regular cash dividends of P0.2231/share for the second half of 2023. The record date is November 13, 2023, and the payment date is November 24, 2023.