Ayala Land, Inc.'s Q12024 Net Income is Up 39% to P6.3 Billion

Due in large part to robust consumer demand and real estate demand, Ayala Land, Inc. (ALI) reported strong earnings growth in the first quarter of the year. In comparison, ALI's consolidated revenues climbed by 33% to P41.0 billion in the first quarter of 2023, while its net income improved by 39% to P6.3 billion.

Revenues from property development climbed by 47% to P25.0 billion, mostly due to strong reservations for residential and commercial lots. Sales from commercial and industrial lots increased by 59% to P2.8 billion, while sales from residential lots increased by 51% to P21.4 billion. The quarter's sales bookings were offset by a lower incremental percentage of project completion, which resulted in a 26% decrease in office-for-sale revenues to P826 million.

The robust demand for products in the premium and vertical segments drove the P33.3 billion in residential reservation sales, which was 20% more than the first quarter of 2023 and 19% more than the previous quarter. The sales success for the quarter resulted in an increase in monthly sales from P9.5 billion in 2023 to P11.1 billion on average. The sales success during this time was driven by AyalaLand Premier's (ALP) Park Villas in Makati CBD and The Courtyards Phase 3 in Vermosa, Alveo's Park East Place in BGC and Sereneo in Nuvali, and Avida's Verge Tower 1 in Mandaluyong.

​In the first quarter of 2024, Ayala Land unveiled four P13.7 billion projects, including horizontal developments such as Scapes Rizal Sector 2B and Scapes San Fernando Sector 2 in the province of Pampanga by Amaia, Sereneo by Alveo in Nuvali, Laguna, and Caleia in Vermosa, Cavite.
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Meanwhile, additional Seda hotel rooms at Manila Bay and Nuvali contributed to leasing and hospitality income, which rose by 8% to P10.9 billion due to higher mall occupancy, higher office and hotel rental prices, and these factors. Revenues from shopping centers increased by 9% to P5.5 billion, while P3.1 billion in office leasing saw an improvement. In addition, sales from hotels and resorts increased by 8% to P2.3 billion. 

Construction, property management, and aviation are just a few of the service industries that saw a 42% increase to P4.2 billion. Due to more contracts from outside projects, Makati Development Corporation's net construction revenues increased to P2.6 billion, a 75% increase. The P1.5 billion in income earned by Property Management, AirSWIFT, and retail electricity supply providers represented a 7% year-over-year increase, mostly attributable to higher parking and airline passenger revenues.

“Our first quarter performance reflects our commitment to delivering on our operational targets this year, focused on high-value market opportunities and our drive for quality," said ALI President and CEO Ms. Anna Ma. Margarita Bautista-Dy. “Anchored on the resiliency of the local property market and consumer activity, we look forward to executing our plans to support our growth aspiration for 2024," she added.
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With P18.8 billion in capital expenditures, residential projects accounted for 49%, estate development for 30%, land acquisition for 9%, commercial leasing projects for 11%, and other uses for 1% of the total. As of the end of the quarter, ALI's well-managed debt portfolio had an average maturity of 4.1 years, with 91% of its debt committed to long-term tenors and 75% locked in fixed rates. There is a 0.74:1 net gearing ratio and a 4.6x interest coverage ratio.

Ayala Land announced dividends to shareholders on March 5th, amounting to P0.2050 per share, or P3.1 billion. As of the end of April, the business had effectively returned P5.7 billion in capital to its shareholders, or 23% of its P24.5 billion net income in 2023, when combined with P2.6 billion in share buybacks.

​Ayala Land Inc. is the largest property developer in the Philippines, with more than 11,000 hectares of land bank and a solid track record in developing large-scale, integrated mixed-use, and sustainable estates. With a footprint spanning 52 estates nationwide, Ayala Land has a diverse real estate portfolio composed of residential, office, commercial, and industrial properties for sale, as well as properties for lease, such as shopping centers, offices, hotels, resorts, warehouses, co-living, and co-working spaces. Additionally, Ayala Land is engaged in construction, property management, and other property-related investments.