₱100 Billion Allocated by Ayala Land Inc. for Projects in 2022

Ayala Land Inc. (ALI) is looking to bring ₱100-billion worth of new inventory to the real estate market this year as they hope to restore the pre-pandemic expansion appetite. The move comes after the property giant had a net profit of ₱12.2 billion in 2021, accounting for a 40% growth, which was primarily sourced from higher property development and office leasing revenues.

“Our focus in 2021 was to ensure we provided the right environment in our communities for our residents, businesses, and institutional locators to adapt and function better while executing our business recovery plans,” explained ALI president and CEO Bernard Vincent Dy. “As the economy moves to full reopening in 2022, we look forward to the acceleration of our business activity backed by our land bank, diversified portfolio, and market-leading estate developments.”

Augusto Bengzon, ALI’s chief financial officer, noted that the firm’s capital spending for 2022 would increase to ₱90 billion during an investors briefing on Tuesday. Of the total capital outlays, 49% will be utilized for residential projects while 18% will go to estate development. Additionally, land acquisition will account for 19%, mall developments at 5%, and hotel and resorts, as well as offices, will share 2% each.

“With the full reopening [of the economy], we see or anticipate increased demand from the renewed confidence and, as such, we are planning to launch P100 billion worth of projects,” added Dy. In terms of new product launches, ALI’s Alveo brand will have 38% while 25% and 24% will be allocated for Avida and Ayala Land Premier, respectively. For the location, the firm is eyeing 43% for South Luzon and 33% for Metro Manila.

In 2021, 22 projects were rolled out by ALI valued at ₱75.3 billion — this was seven times higher compared to the rollout in 2020 when local lockdowns were at their peak. Also in the past year, ALI’s revenues saw a 10% jump to ₱106.1 billion as its property development revenues hiked to ₱75.9 billion accounting for a 14% growth.

The firm’s future revenue growth appears to be on the right track as sales reservations for this year alone have already reached ₱92.2 billion, a 13% increase compared to 2020, primarily due to the demand for Ayala Land Premier and Alveo lots located in South Luzon.  In the past year, sales reservations from lots were at ₱41.5 billion. During the fourth quarter, ALI’s sales recorded a 5% year-on-year growth to ₱22.1 billion.

Source: Inquirer