Ayala Land, Inc. (ALI)  net income up 39% to P6.3B

Ayala Land, Inc. (ALI) delivered significant earnings growth in the first quarter of the year, supported by healthy property demand and consumer activity. ALI’s net income grew 39% to P6.3 billion, while consolidated revenues increased by 33% to P41.0 billion from the first quarter of 2023.

Property development revenues increased by 47% to P25.0 billion, driven by robust residential and commercial lot bookings. Residential revenues surged by 51% to P21.4 billion, and revenues from commercial and industrial lots jumped 59% to P2.8 billion. Meanwhile, office-for-sale revenues registered 26% lower to P826 million as the lower incremental percentage of completion of the projects offset the sales bookings during the quarter.

Residential reservation sales totaled P33.3 billion, 20% higher than the first quarter of 2023 and 19% more than the previous quarter, led by the strong demand for products in the premium and vertical segments. The quarter’s sales performance translated to a monthly sales average of P11.1 billion—an acceleration from P9.5 billion in 2023. AyalaLand Premier’s (ALP) Park Villas in Makati CBD and The Courtyards Phase 3 in Vermosa, Alveo’s Park East Place in BGC, and Sereneo in Nuvali, and Avida’s Verge Tower 1 in Mandaluyong drove the sales performance during the period.

Ayala Land launched four projects in the first quarter of 2024 valued at P13.7 billion, composed of horizontal developments such as Alveo’s Sereneo in Nuvali, Laguna and Caleia in Vermosa, Cavite, and Amaia’s Scapes Rizal Sector 2B and Scapes San Fernando Sector 2 in the province of Pampanga.

Meanwhile, leasing and hospitality revenues increased by 8% to P10.9 billion, owing to higher mall occupancy, increased mall, office and hotel rental rates, and the contribution of new Seda hotel rooms at Manila Bay and Nuvali. Shopping center revenues grew by 9% to P5.5 billion, while office leasing improved by 5% to P3.1 billion. Furthermore, hotel and resort revenues accelerated by 8% to P2.3 billion.

Service businesses composed of construction, property management, and airline, among others, registered a 42% growth to P4.2 billion. Makati Development Corporation’s net construction revenues reached P2.6 billion, a 75% surge on account of additional contracts from external projects. Property Management, AirSWIFT, and retail electricity supply companies generated revenues of P1.5 billion, a 7% increase year-on-year, mainly from higher parking and airline passenger revenues.

“Our first quarter performance reflects our commitment to delivering on our operational targets this year, focused on high-value market opportunities and our drive for quality,” said ALI President and CEO Ms. Anna Ma. Margarita Bautista-Dy.  “Anchored on the resiliency of the local property market and consumer activity, we look forward to executing our plans to support our growth aspiration for 2024,” she added.

Capital expenditures totaled P18.8 billion, wherein 49% was spent on residential projects, 30% for estate development, 9% for land acquisition, 11% for commercial leasing projects, and 1% for other purposes. ALI has a well-managed debt portfolio with an average maturity of 4.1 years at the end of the quarter, 91% contracted into long-term tenors, and 75% locked-in fixed rates. The net gearing ratio stands at 0.74:1, while the interest coverage ratio is 4.6x.

On March 5, Ayala Land declared dividends of P0.2050 per share to stockholders, equivalent to P3.1 billion. Combined with P2.6 billion in share buybacks as of the end of April, the company has effectively returned P5.7 billion in capital to its shareholders, equivalent to 23% of its P24.5 billion net income in 2023.