Ayala Land to accelerate rollout of new offerings, focuses on innovation

Ayala Land, Inc. (ALI) has maintained its positive outlook for 2023 and beyond as it plans to introduce new offerings geared towards evolving market needs and to accelerate the rollout of more sustainable estates nationwide in line with the full reopening of the Philippine economy.

Boosted by the return of mobility and public consumption to pre-pandemic levels, ALI’s diversified real-estate portfolio grew its consolidated revenues by 19% year-on-year to P126.6 billion in 2022. The company’s net income of P18.6 billion also marked a 52% increase over the previous year.

ALI has set aside P85 billion for capital expenditures in 2023, higher than the P72.4 billion spent last year. About 39% of these expenditures will be allocated for residential projects, while 23% will be used for land acquisition.

“As the country’s growth continues to gain momentum, we will accelerate the rollout of our large-scale, mixed-use, and sustainable estates. With 49 estates across the country, we see these as additional growth platforms for ALI and as catalysts for economic progress for the communities we serve,” said ALI Chairman Jaime Augusto Zobel de Ayala in a speech at the company’s Annual Stockholders Meeting.

Ayala Land launched two new estates in 2022, namely Areza at Lipa City, Batangas, and Crossroads at Plaridel, Bulacan. The 92-hectare Areza development is ALI’s first master-planned, mixed-use estate in Batangas, while Crossroads is an 83-hectare integrated mixed-use master-planned estate with residential and commercial components in the rising enterprise zone on the eastern side of Bulacan.

“We are investing P15.2 billion for the initial development of these two estates over the next few years. We believe they will spur economic activity in these emerging localities, maximize synergies among our product lines, and enable us to deliver value to these local economies and their stakeholders,” said Zobel.

ALI President and CEO Bernard Vincent O. Dy added that 2022 provided the company with an opportunity to revitalize its business lines. Aside from the sustained demand for its property development products, ALI’s commercial leasing business posted a 62% increase in revenues to P33.4 billion last year.

The company registered ancillary business growth as well, with subsidiary AyalaLand Logistics Holdings Corporation adding 86,700 square meters of warehouse space in Calamba, Cavite and Batangas.

“Moreover, our property-for-share swap with AREIT involving six properties based in Cebu, worth P11.3 billion, received approval from the SEC. This transaction propelled AREIT’s leasing portfolio to 673,000 square meters and assets under management to P64 billion,” said Dy.

Ayala Land also continues to invest in new products and services to meet the needs of the changing market. In November of 2022, the company launched the One Ayala Terminal alongthe corner of EDSA and Ayala Avenue, designed to enhance the commuting experience of the public. The transport hub promotes inclusivity to serve more commuters and accommodate various transport groups. ALI also launched 21 EV charging stations across Metro Manila. This initiative reinforces the company’s commitment to the environment as it anticipates the broader adoption of EV vehicles in the country in the coming years.While profitability and market presence are vital, Dy added that ALI measures success by the value it contributes to society and the footprint it leaves on the environment. ”Our various business lines have created a multiplier effect on employment, with our construction business alone employing over 50,000 workers and our mall and office locators providing 441,000 jobs nationwide,” he explained.

The Alagang AyalaLand program also supported close to 1,600 social enterprises offering socially and ecologically sustainable products by providing rent-free space in Ayala malls nationwide. This initiative has generated more than 10,000 jobs to the benefit of numerous Filipino families.

“In addition, we made significant strides in reducing our environmental footprint by achieving carbon neutrality covering scopes 1 and 2 emissions in our commercial properties,” Dy added while discussing ALI’s continued efforts to collect tons of clean and dry plastics from its malls, offices, and estates. These are then repurposed into ready-mix concrete and eco products for sidewalks, perimeter fences, and plastic pallets.

“We will continue to focus on customer satisfaction, operational excellence, and innovation to create more value for our stakeholders and to build on our sustained growth,” said Dy.