ALI on track to hit net income target

MANILA, Philippines -  Ayala Land Inc., the property and mall developer of the Ayala Group, is on track to hit its net income target of P40 billion by 2020 as it plans to launch P100 billion worth of residential projects this year, officials said.

In a recent briefing, ALI president Bernard Dy said that from 2017 to 2020, the company would need to grow by 18 percent.

“From 2017 to 2020, we now have to grow 18 percent to be able for reach the P40 billion target. We continue to remain committed to achieve our target,” Dy said.

This year, ALI will launch P100 billion worth of new inventory, the bulk of which would be residential projects.

“In terms of our investment assets, we will continue with our program of building more shopping centers, offices and hotels, hotel rooms,” Dy said.

Dy said the program would introduce more projects this year on the back of continued growth prospects for the economy, including the property sector.

“We feel good about 2016 and are optimistic about 2017,” Dy said.

Last year, ALI posted a net income of P20.9 billion, up 19 percent compared to 2015 as consolidated revenues rose 16 percent to P124.6 billion.

Revenue rose on the back of the steady turnover of its residential and office segments as well as commercial and industrial lots, the company said.

In the fourth quarter alone, net income rose P5.8 billion, up 22 percent while revenue rose to P39 billion from P32 billion.

By segment, revenue from property development grew 17 percent to P79.2 billion in 2016.

Similarly, commercial leasing revenue grew eight percent to P26.6 billion last year on the back of the expansion of its portfolio of malls, offices and hotels and resorts.

ALI was able to launch P61.5 billion worth of residential and office for sale products last year through its five residential brands, Ayala Land Premier, Alveo, Avida, Amaia and BellaVita.

In terms of mall revenue, ALI churned over P15 billion from Glorietta and Greenbelt in Makati, Market!Market! in Taguig, Trinoma in Quezon City as well as the contribution of its new malls such as Solenad in Nuvali and UP Town Center, also in Quezon City.

Office leasing revenue increased seven percent to P5.5 billion due to the increasing contribution of newly opened offices such as UP Town Center BPO and Bonifacio Stopover at Bonifacio Global City (BGC).

Total gross leasable space in its office segment registered at 835,742 sqm last year with the addition of newly opened offices in its portfolio.

ALI is targeting to complete seven shopping centers this year with a total gross leasable space of 224,000 sqm.

These include the recently opened Ayala Malls The 30th in Pasig, as well as Ayala Malls Vertis North in the Quezon City CBD, Ayala Malls Feliz in Cainta, and Ayala Malls One Bonifacio High Street in BGC, among others. It also plans to complete a total of 185,000 sqm of gross leasable office space in locations like Vertis North, Circuit Makati, and The 30th in Pasig within the year.

The company is pouring in P88 billion this year for capital expenditures, higher than the P85 billion spent last year.

Dy