Ayala Land Inc. (ALI), the listed property giant of the Ayala Group, reported a net income of P18.6 billion last year, up 52 percent year-on-year.
The company expects to sustain the momentum this year and has set P85 billion in capital expenditures, up 18 percent from P72 billion last year, said ALI president and CEO Bernard Vincent Dy.
For 2023, ALI will launch P110 billion worth of residential developments from P92 billion last year and possibly bring this up to P130 billion if the market is strong, Dy also said.
In all, Dy said the business environment is looking positive despite the challenges such as high inflation.
“The Philippines is in a good place,” Dy said, noting that economic activities continue along with the recovery of the economy.
Last year’s net income figures reflected the recovery of the business, along with the reopening of the economy since the 2020 pandemic, officials said.
Dy said the company is encouraged by the performance last year with all business lines posting recovery.
“We are encouraged by our solid performance in 2022, driven by the full reopening of the Philippine economy and the support of our customers. All major business lines achieved meaningful recovery, a testament to our employees’ hard work and dedication,” Dy said.
Moving forward, Dy said, the outlook remains positive for 2023.
“We look forward to introducing new offerings that will meet the evolving needs of the market. Our focus on customer satisfaction, operational excellence, and innovation will continue to guide our efforts as we pursue sustained growth,” Dy said.
The company raked in consolidated revenues of P126.2 billion last year, 19 percent more year-on-year.
Capital expenditures for 2022 reached P72.4 billion, of which 50 percent was spent on residential projects, 19 percent on land acquisition, 16 percent on estate development, 11 percent on commercial projects, and four percent for other purposes.
Property development revenues reached P81.2 billion, a seven percent growth from 2021. Commercial lot sales led the segment’s advance as revenues surged by 75 percent to P14.5 billion on investor demand at Arca South, Nuvali, and Broadfield estates.
The steady construction progress of residential projects resulted in revenues of P63.5 billion, a slight dip from the previous year due to stretched downpayments.
Meanwhile, office-for-sale revenues declined by 16 percent to P3.2 billion due to the completion of Alveo’s Park Triangle Tower at BGC and the moderate take-up on remaining limited inventory.
ALI launched two new estates in 2022: Areza at Lipa City, Batangas, and Crossroads at Plaridel, Bulacan. Areza, a 92-hectare development, is ALI’s first master-planned, mixed-use estate in Batangas.
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.
For this year, ALI will launch four estates. These will be in Batangas, Bulacan and Mindanao.