Ayala Land posts income growth despite challenging 2024

Property developer Ayala Land Inc (ALI.PS) said its 2024 net income rose 15% to P28.2 billion in 2024, driven by strong property sales.  

Consolidated revenues grew 21% to P180.7 billion. Property development revenues increased 22% to P112.9 billion, fueled by higher residential and estate lot bookings.  

Residential revenues rose 23% to P94.9 billion on higher bookings across all brands. Commercial and industrial lot revenues surged 34% to P14.6 billion, lifted by demand outside Metro Manila.  

"We ended the year on solid footing, with all our business lines executing on their growth strategies," Ayala Land President and CEO Anna Ma. Margarita Bautista-Dy said.  

"We look forward to the year and are excited to bring innovative residential and leasing offerings to our customers, expand our market reach and capture new business opportunities," she added.

Separately, Ayala Land's real estate investment trust (REIT), AREIT Inc (AREIT.PS), said it will acquire nearly P21 billion worth of assets from its sponsor via a property-for-share swap.

AREIT will acquire eight commercial properties from ALI and its subsidiaries, Accendo Commercial Corp, Cagayan de Oro Gateway Corp, and Central Bloc Hotel Ventures Inc.  The assets are valued at P20.99 billion, based on a third-party fairness opinion. In exchange, ALI and its subsidiaries will subscribe to 505.890 million AREIT shares.

The proposed swap is subject to AREIT shareholder approval at its annual meeting on April 24, 2025, and regulatory approvals.  

AREIT also declared a regular cash dividend of P0.58 per common share for the fourth quarter of 2024, with a record date of March 5, 2025, and a payment date of March 21, 2025.  

ALI has regularly injected assets into AREIT in recent years. Last year, AREIT acquired P28.6 billion worth of properties from ALI via a similar swap.

AREIT's assets under management reached P117.6 billion, nearly four times its 2020 market debut value.  Its portfolio includes office, mall, hotel, and industrial land assets.  

Overall occupancy remained high at 96%, above the industry average. AREIT aims to achieve $3 billion in assets under management over the next three years.

AREIT was recently added to the 30-company Philippine Stock Exchange Index.