ALI eyes P90 B capex for 2016

MANILA, Philippines – Ayala Land Inc. (ALI), may spend up to P90 billion in capital expenditures next year, ALI chief financial officer Jaime Ysmael said over the weekend.

“We’re still finalizing,” he said but noted that it would not be too far from this year’s allocation.

For this year, ALI set aside P100 billon for capex but may end up spending below the amount.

As of end-September, ALI has spent around P60.3 billion after launching residential and leasing projects worth P97.9 billion in the first nine months.

The first three quarters of the year saw ALI launching three mixed use estates namely Cloverleaf in Quezon City, Capitol Central in Bacolod City, and the 700-hectare Vermosa in Cavite.

“We’re investing heavy across all business lines,” said ALI president Bobby Dy.

To fund next year’s capex, ALI is keeping a close watch on the interest rate environment, Ysmael said.

Funding would come from a combination of fund-raising from the capital market and possibly loans.

ALI is optimistic on prospects for next year.

“If you look at GDP, it would be quite healthy, OFW remittances are robust, the BPO is good and tourism, too. Interest rates continue to be at historic lows. These indicators bode well for our different businesses,” Dy said.

The company also continues to be on the lookout for expansion opportunities in the Asean region.

ALI reported a net income of P12.8 billion in the nine months to September, up 19 percent from P10.79 billion a year ago.

In an earlier disclosure to the Philippine Stock Exchange (PSE), ALI said nine-month revenues increased to P75.1 billion, up by 10 percent from P68.3 billion on the back of the steady performance of its different business segments such as residential, malls, offices and hotels.

In the third quarter alone, net income rose 19 percent to P4.4 billion versus P3.7 billion, while revenues reached P24.4 billion compared to P22.1 billion, an increase of 10 percent.

In terms of revenues, ALI churned out P70.2 billion for its real estate business, on the back of the stable performance of the company’s property development, commercial leasing and services businesses.