Ayala Land unveils P110 billion worth of projects in 2023

Ayala Land Inc., the property developer, plans to launch P110 billion worth of projects in 2023, up 20.3 percent from P91.4 billion it began in 2022. The company is positive in its outlook for 2023 as the demand for real estate remained resilient despite the high-interest rate environment, according to a report by Manila Standard.

Bernard Vincent Dy, ALI's President and CEO, stated that the company had earmarked P85 billion in capital expenditures for 2023, up 14 percent from the P72.4 billion spent last year. However, the group is prepared to upsize the launches to P130 billion "if the market comes in stronger than anticipated."

According to Dy, ALI reported a 52 percent increase in net income in 2022, amounting to P18.6 billion from P12.2 billion in 2021. Consolidated revenues also rose 19 percent to P126.2 billion from P106.1 billion, buoyed by the strong recovery of residential and leasing businesses.

Property development revenues increased 7 percent to P81.2 billion, with a strong fourth-quarter sales growth of 24 percent to P27.6 billion. Reservation sales also increased by 14 percent to P104.9 billion in 2022.

Sales from the commercial leasing business have rebounded by 62 percent year-on-year to P33.4 billion, driven by normalized mall rents and foot traffic, the contribution of new office spaces, and higher hotel room rates. Revenues from shopping centers and hotels have doubled to P16.1 billion and P6.2 billion, respectively, following the resurgence in foot traffic and mobility.

However, office-for-sale revenues decreased by 16 percent to P3.2 billion in 2022 due to the completion of Alveo's Park Triangle Tower at BGC and the moderate take-up of remaining limited inventory.