Ayala Land sets P88-B capex

MANILA, Philippines - Ayala Land Inc. (ALI) has set aside P88 billion for capital expenditures this year.

“Our capex for this year is P88 billion. Last year, it was P85 billion,” Dy said.

Agusto Bengzon, deputy CFO and treasurer of ALI, said funding would come from internally generated cash and roughly P15 to P20 billion through the debt market.

Last year, ALI posted a net income of P20.9 billion, up 19 percent year-on-year as consolidated revenues rose 16 percent to P124.6 billion.

Revenues rose on the back of the steady traction of its residential and office for sale segments as well as commercial and industrial lots, the company said.

“We achieved a higher level of profitability coming from the sustained growth of our estates and core businesses. We executed our investment program to ensure continued growth in the coming years,” ALI president and CEO Bernard Vincent Dy said.

In the fourth quarter of 2016, net income grew 22 percent to P5.8 billion while revenues rose to P39 billion from P32 billion.

Revenues from property development increased 17 percent to P79.2 billion, driven by the steady traction of its residential and office for sale segments, complemented with commercial and industrial lot sales.

Commercial leasing revenues went up eight percent to P26.6 billion on the back of the expansion of its portfolio of malls, offices and hotels and resorts.

ALI launched P61.5 billion worth of residential and office for sale products last year through its five residential brands, Ayala Land Premier, Alveo, Avida, Amaia and BellaVita. Residential sales went up three percent to P108 billion.

The property giant registered P15 billion in revenues from Glorietta and Greenbelt in Makati, Market!Market! in Taguig, Trinoma in Quezon City as well as the contribution of its new malls such as Solenad in Nuvali and UP Town Center, also in Quezon City.

Revenues from office lease operations likewise rose seven percent to P5.5 billion due to the increasing contribution of newly opened offices such as UP Town Center BPO and Bonifacio Stopover at Bonifacio Global City.

Total gross leasable space in its offices segment registered at 835,742 sqm last year with the addition of newly opened offices in its portfolio.

This year, ALI is targeting to complete seven shopping centers with a total gross leasable space of 224,000 sqm.

These include the recently opened Ayala Malls The 30th in Pasig, as well as Ayala Malls Vertis North in the Quezon City CBD, Ayala Malls Feliz in Cainta, and Ayala Malls One Bonifacio High Street in BGC, among others. It also plans to complete a total of 185,000 sqm of gross leasable office space in locations like Vertis North, Circuit Makati, and The 30th in Pasig within the year.

“We are optimistic about 2017,” he said.