Ayala Land to accelerate spending, support private construction recovery

Ayala Land, Inc. (ALI) is poised to increase its investment in the second half of 2024, aiming to bolster the recovery of the private construction sector.

During a recent analyst briefing in Makati City, Chief Financial Officer Augusto Bengzon revealed that ALI has already invested PHP36.5 billion in capital expenditures (capex) in the first half of the year.

The majority of this expenditure has been allocated to residential projects, totaling PHP18.4 billion. Other significant investments include estate development at PHP9.8 billion, land acquisition at PHP4.2 billion, office spaces at PHP1.9 billion, malls at PHP1.8 billion, with PHP200 million each for hotels and resorts and other miscellaneous projects.

Bengzon indicated that ALI plans to ramp up spending in the latter half of the year. “We anticipate accelerating our expenditures, and our capex guidance of PHP100 billion remains unchanged. Although we started a bit slow, our project teams are confident they will meet the budget for the rest of the year,” he said.

National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan recently noted that private construction has not yet returned to pre-pandemic levels but is approaching the 2019 benchmarks. Balisacan expects a full recovery in the sector by next year.

ALI’s capex is nearing its pre-COVID-19 levels, which were around PHP108 billion, with a forecast of PHP100 billion for this year.

In the first half of 2024, ALI reported a 28% increase in revenues, reaching PHP84.3 billion compared to the previous year. Net income also saw a 15% rise, totaling PHP13.1 billion.

“Ayala Land is achieving its growth targets across all sectors. Our residential sales have exceeded expectations, and we are committed to maintaining our growth trajectory while focusing on capital efficiency,” stated ALI President and CEO Anna Ma. Margarita Bautista-Dy. “We are reimagining our assets to offer enhanced and unique experiences to our customers, and we will continue to provide compelling residential options for Filipino homeowners.”