MANILA -- Ayala Land Inc. (ALI) has earmarked a PHP130-billion capital spending for 2019, to fund the development of more real estate projects following a banner performance last year, as a rosier economic outlook is expected to support continued growth of the property market.
“In 2019, we are hopeful, we feel way positive that the economy will continue to be supportive with property industry therefore, allow us to continue to make progress in our 2020-PHP40 billion plan,” ALI President and Chief Executive Officer Bernard Vincent Dy said in a press briefing Friday.
Dy was referring to the company’s 2020 growth plan to reach PHP40 billion in net income.
“From 2018 to 2020, we need to grow 17 percent per year to get to the PHP40 billion, this is now within striking distance,” he said.
ALI chief finance officer Augusto Bengzon said 40 percent of this year’s planned PHP130-billion capital expenditures (capex) will be spent on residential projects, about 20 to 25 percent for the leasing segment, and the balance spread across land acquisition, estate development and others.
The company spent a record PHP110.1 billion in capex last year.
“And then, we planned to launch about PHP130 billion (projects) also this year. But the launch will be dependent on the kind of demand of the market this year,” Dy added.
Meanwhile, ALI reported a 16-percent increase in net income to PHP29.2 billion in 2018 from PHP25.3 billion the previous year, driven by sustained demand for residential products and the healthy performance of its leasing businesses.
Its consolidated revenues climbed 17 percent to PHP166.2 billion from PHP142.3 billion.
Property development revenues rose 18 percent to PHP113.4 billion owing to strong sales across its residential, office for sale and commercial lot segments.
Meanwhile, leasing revenues grew 17 percent to PHP34.9 billion on the back of robust local consumption, increasing demand in business process outsourcing (BPO) offices and a thriving tourism sector.
“As we celebrated our 30th year in 2018, we remained focused on developing more sustainable communities that enrich the lives of Filipinos. We introduced two new estates to bring our total to 26, registered the highest level of residential sales in our history, and stayed on track to open more commercial developments. These led to strong financial results and positioned our company for continued growth in the coming years,” Dy further said. (PNA)
