MANILA, Philippines — Ayala Land Inc. (ALI), the property developer of the Ayala Group, posted a net income of P11.4 billion in the first half of the year, up 41 percent from the same period a year ago.
The company raked in consolidated revenues of P66 billion, 24 percent higher than the previous year.
ALI president and CEO Bernard Vincent Dy said the company’s notable performance in the first half of 2023 reflects the sustained resilience of the property market and strong consumer activity in the geographic areas where ALI operates. He attributed this to the economy’s recovery.
“Leveraging the positive momentum of the economy, we will capitalize on market opportunities to enhance our diversified portfolio throughout the rest of the year,” Dy said.
ALI grew its property development revenues by 13 percent to P38.7 billion from higher residential project completion, bookings, and sales of commercial and industrial lots and office units.
Similarly, residential revenues increased by 14 percent to P31.2 billion, while office-for-sale revenues rose by 44 percent.
ALI’s residential sales reservations rose by 18 percent to P58.3 billion, as second-quarter sales reached P30.6 billion.
Sales were driven by 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.
ALI launched three new projects with a combined value of P23.3 billion in the second quarter.
These are Alveo’s Park East Place in BGC, the second tranche of ALP’s Arcilo in Nuvali, and Amaia’s Steps The Junction Place Delicia in Quezon City. These developments bring Ayala Land’s total launch value to P31.9 billion in the first half of the year.
The company has so far spent P38.7 billion in capital expenditures wherein 55 percent was spent on residential projects, 11 percent on commercial projects, 15 percent on land acquisition, 14 percent on estate development, and the rest for other purposes.
ALI has a well-managed debt portfolio with an average maturity of 4.6 years, 95 percent contracted into longterm tenors, and 86 percent locked-in fixed rates.
This developed as ALI’s subsidiary AyalaLand Logistics Holdings Corp. (ALLHC) registered consolidated revenues of P1.5 billion and a net income of P339 million for the first six months of 2023.
This is lower than the P1.7 billion consolidated revenues recorded a year ago and the P399 million net income in the same period last year.
Sales from industrial lots contributed P675 million in revenues, a three percent increase from P657 million last year.
On the other hand, warehouse leasing posted P331 million in revenues, a nine percent decline versus the previous year, on account of the facilities upgrade of ALogis Calamba, which was delivered and leased out at the end of the second quarter. Overall occupancy is expected to rise within the second half of the year as tenants commence with their operations.
“In the first half of the year, the company’s performance remained sound. We remain positive that our diversified real estate portfolio, alongside our up-and-coming projects in the pipeline, will propel the business forward,” said ALLHC chief operating officer Patrick Avila.