ALI 9M24 net income up 15% to P21.2B

6 Nov 2024 – Ayala Land, Inc. (ALI) sustained its solid earnings growth momentum for the first nine months of 2024, with a net income of P21.2 billion, up 15% year-on-year. Anchored on resilient property demand and consumer activity, consolidated revenues increased 27% to P125.2 billion.

Property development revenues rose 34% to P76.6 billion, on the back of higher residential and commercial lot bookings. Residential revenues improved 35% to P64.2 billion, while revenues from commercial and industrial lots surged 51% to P10.4 billion. Office-for-sale revenues for the period stood at P2.0 billion mainly from project bookings.

Nine-month residential sales reservations increased 17% to P100.5 billion, driven by the premium market. The company’s strong sales performance translated to a monthly average of P11.2 billion—better than the P9.5 billion average during the previous year. Total launches for the period reached P45.6 billion, with a 51-49 split between vertical and horizontal projects. Notable launches in the third quarter were AyalaLand Premier’s (ALP) Orchard Vistas at Anvaya Cove in Bataan and Ayala Greenfield Estates Brookside Park in Calamba, Laguna; Avida’s mid-rise condominium offering, Sentria Storeys Vermosa in Cavite; and the second tower of Amaia Skies Sta. Mesa in the city of Manila.

Meanwhile, leasing and hospitality revenues totaled P33.2 billion, 8% higher than in 2023 owing to the contribution of new assets namely, One Ayala Mall and East and West Office towers, Ayala Triangle Gardens Tower Two, and Seda Manila Bay. Shopping center revenues advanced 7% to P16.7 billion, while office leasing grew by 7% to P9.4 billion. Moreover, hotel and resort revenues reached P7.1 billion, up 13% year-on-year.

Service businesses composed of construction, property management and other ancillary services grew 54% to P12.8 billion. Makati Development Corporation’s net construction revenues nearly doubled to P8.5 billion, on account of additional contracts from external projects. Property Management and other ancillary services registered a 9% improvement to P4.3 billion, mainly from airline ticket sales and property management fees.

“We are pleased with the solid results delivered across our business lines,” said ALI President and CEO Ms. Anna Ma. Margarita Bautista-Dy. “With signs of market headwinds clearing, coupled with our reinvention initiatives, we look forward to continue delivering high-quality products to our stakeholders,” she added.

Capital expenditures reached P51.9 billion, of which 49% were spent on the build out of residential projects, 27% on estate development, 13% on leasing and hospitality assets, and 11% on land acquisition commitments.

ALI ended the first nine months of 2024 with a solid net gearing ratio of 0.70:1 and a healthy interest coverage ratio of 5.3x.

On October 24, Ayala Land declared 2nd half dividends of P0.2913 per share to stockholders, equivalent to P4.3 billion. This bring ALI’s full-year dividends to P0.4963 per share totaling P7.4 billion. Combined with P6.5 billion in share buybacks as of September 2024, ALI has returned P13.9 billion in capital to shareholders, amounting to 57% of prior year’s net income.