Ayala Land, Inc. (ALI), one of the Philippines’ leading property developers, has shown exceptional growth and resilience in the first half of the year during its Analyst Briefing on August 8, 2024. Marked by an impressive financial performance with continued expansion across different segments, it reaffirms the company’s position as the main player in the real estate industry.
Financial health highlights
Ayala Land, Inc. reported a total revenue of P84.3 billion for Q1 and Q2—an increase of 28% from last year’s—driven by higher residential bookings, increased commercial lot sales, external construction projects, and steady leasing operations. Its net income also rose to 15%, reaching P13.1 billion, due to its effective cost management and strategic initiatives.
Performance for each segment
The property segment was up by 34%, generating P51.9 billion, while the residential was a significant contributor with surging revenues by 40%, bringing in P43.7 billion. This growth was fueled by higher bookings across all segments, reflecting the strong demand for both horizontal and vertical developments. Commercial and industrial lot sales also increased by 19%, attributing to successful transactions in Laguindingan Technopark, Broadfield, and Nuvali estates.
A 10% increase with revenue of P22.1 billion was posted by the commercial leasing segment. The addition of new shopping centers, such as One Ayala, and higher property rent contributed to the growth with an 8% increase and P11.1 billion in revenue. The office leasing also grew by 6% with an income of P6.1 billion due to higher occupancy rates and new office spaces like Ayala Triangle Tower Two.
For hotel and resorts and services segments, the former saw a 19% increase, totaling P5 billion in revenue—an upsurge caused by higher room rates and contributions from new properties such as Seda Manila Bay and expanded facilities in Nuvali and Lio; and the latter soared to 51% with a total of P8.4 billion revenue, including the net constructions revenues that doubled to P5.5 billion—all driven by increased external project bookings.
Investments and capital expenditures
Ayala Land, Inc. continued its aggressive investment strategies, with a capex of P36.5 billion in the first half of the year. The allocation was primarily directed towards residential developments at 51%, estate developments at 27%, land acquisition at 11%, and commercial leasing at 11%.
Strategic developments
In the first half of 2024, Ayala Land, Inc. reported robust residential sales of P68.4 billion, a 17% increase from last year’s. This growth was led by premium vertical products, accounting for 62% which indicated a strong market preference for high-rise developments. The launches during the said period were predominantly in the premium category, highlighting the company’s focus on catering to the affluent market.
Another in the developer’s portfolio that continued to perform well was its leasing operations, with higher occupancy and rental rates across its properties, including new notable openings such as One Ayala HQ, Park Triangle, Atria Park, and Nuvali. Its malls greatly contributed to the leasing revenues with its occupancy rate of 89% and 2.1 million square meters of gross leasable area (GLA). The office segment with a GLA of 1.4 million square meters and a lease-out rate of 91% also saw healthy growth.
Ayala Land stands tall
Ayala Land, Inc.’s performance in the first half of 2024 underscores its resilience and strategic foresight in navigating the evolving real estate landscape. “Ayala Land is hitting its growth targets across all business lines and market segments. Residential sales outperformed expectations. We will continue to pursue our growth trajectory with a keen eye on capital efficiency,” said Ayala Land President and Chief Executive Officer Anna Ma. Margarita Bautista-Dy in a statement. “We are reinventing our assets to deliver elevated and differentiated experiences to our customers, and we will continue to bring compelling and market-shaping residential offerings to Filipino homeowners.”
With a strong financial foundation, diversified revenue streams, and continuous investments in high-growth segments, Ayala Land is well-positioned to sustain its growth trajectory and deliver value to its stakeholders. As the company progresses through the remaining half of 2024, it remains committed to its vision of enriching land and enriching lives for more people.
