AYALA Land, Inc. (ALI) has allocated P100 billion for its capital expenditure (capex) budget this year, with plans to launch P115 billion worth of projects, the property developer’s chief financial officer said.
The company’s capex budget for 2024 is 16% higher than the P86.2 billion allocated for capex last year, ALI Chief Finance Officer Augusto D. Bengzon said during a briefing on Tuesday.
“In terms of the 2024 capex breakdown totaling P100 billion, 34% would go to the residential business, 24% for estate development, 19% for land acquisition, 10% for malls, 8% for offices, and 5% for hotels and resorts,” he added.
He also said that ALI aims to launch projects worth P115 billion this year, comprising P100 billion in residential projects and P15 billion in commercial and industrial projects.
Mr. Bengzon added that 44% of the launches will be in Metro Manila, 38% in Southern Luzon, 11% in Visayas, and Mindanao, and 7% in Central Luzon.
“We will launch 52% as horizontal projects and 48% as vertical projects,” Mr. Bengzon said.
For commercial leasing, he said that ALI will complete 68,000 square meters (sq.m.) of gross leasable area consisting of Ayala Malls Vermosa (38,000 sq.m.), Ayala Malls Evo City (18,000 sq.m.), and Park Triangle (22,000 sq.m.).
The company will also add 98,000 sq.m. of gross leasable area for office spaces.
ALI President and Chief Executive Officer Anna Ma. Margarita Bautista-Dy said that 80% of the launches will be in the premium segment while the remaining 20% will be in the core segment.
“The market that we feel is more robust is really the premium segment, which is why we are ready and really improving all our quality, our specification to make sure that we continue to lead in that particular segment,” she said.
“The core segment is very reliant on mortgage, while the premium segment is less reliant on mortgage. Inflation and everything that has happened since the pandemic, it’s usually the middle market that is more vulnerable to changes while the premium segment is a little more resilient,” she added.
ALI is continuing to improve on its core brands such as middle-income brand Avida, she noted.
“Over the medium term, with a country like the Philippines, we need the core to come back, which is why now we continue to nurture our Avida brand. We have the land bank and the projects. We continue to plan and we intend to have projects on push-button mode, so that if there should be opportunities, we will be very quick in being able to capture market changes,” she said.
“We need the core to grow. That’s really where most of the Filipinos are. That’s a segment that we will continue to participate in a big way just as soon as market conditions improve,” she added.
ALI posted a 32% increase in its 2023 net income to P24.5 billion led by strong property demand and consumer activity. The company’s consolidated revenue climbed by 18% to P148.9 billion.
On Wednesday, ALI shares rose by 1.86% or 65 centavos to P35.55 apiece. — Revin Mikhael D. Ochave