ALI bumps up capex to P88 billion

MANILA, Philippines — Ayala Land Inc. (ALI) plans to spend P88 billion this year, higher than the P63.7 billion earmarked in 2020.

As a sign of its confidence on the economy, Ayala Land is pushing through with P100 billion worth of new projects this year, banking on the expected recovery of the business environment from the onslaught of COVID-19, ALI president Bernard Vincent Dy said yesterday.

“Our recovery will be led by our biggest businesses mainly estate development and residential business,” Dy said during the company’s virtual stockholders meeting.

He noted that demand for commercial lots is likewise encouraging and the offices and real estate logistics businesses of ALI also continue to be quite resilient.

However, for malls and resorts, recovery would be felt once mobility restrictions are fully addressed, Dy said.

Last year, Ayala Land reported a 74 percent decline in net income to P8.7 billion as revenues fell 43 percent to P96.3 billion due to the negative impact of COVID-19 on businesses.

However, in the fourth quarter, ALI posted net income of P2.4 billion, up 28 percent from the third quarter. Revenue likewise increased by 49 percent to P33 billion.

By business segments, revenues from property development dipped to P66.5 billion due to construction restrictions and lower bookings but soared 64 percent to P25.8 billion in the fourth quarter from the third quarter, boosted by continuous construction progress in 174 projects across the country.

The lockdowns likewise took a toll on mall and hotel operations.

Commercial leasing revenues declined by 44 percent to P21.9 billion given limited mall and hotel operations, although mall revenues managed to grow 10 percent to P1.7 billion in the fourth quarter from the third quarter as quarantine restrictions eased.