AYALA LAND, INC. (ALI) said it plans to launch P57 billion worth of property development projects in the second half of the year, including the completion of upgrades to its malls and hotels.
“Our sales momentum is improving, and we are preparing for a busy second half with P57 billion in new property development launches, and the completion of reinvention works of malls and hotels,” ALI President and Chief Executive Officer Anna Ma. Margarita Bautista-Dy said in a regulatory filing on Wednesday.
“These initiatives will support our growth aspirations for 2025 and beyond,” she added.
ALI launched P42.9 billion worth of property development projects in the first half, led by Laurean Residences in the Makati Central Business District, commercial lots in Areza in Lipa City, Batangas, and industrial lots for sale in Cavite Technopark.
The target comes as ALI posted an 8% increase in first-half net income to P14.2 billion.
Consolidated revenue fell by 1% to P83.1 billion.
Property development revenue improved by 1% to P52.3 billion on the back of strong commercial and industrial lot sales, as well as resilient bookings in the premium residential segment, the company said.
Residential revenue declined by 5% to P41.3 billion, as growth in the premium segment was offset by lower core bookings.
Commercial and industrial lot revenue rose by 42% to P9.1 billion, driven by sales of lots in Arca South in Taguig City, Circuit Makati, and Arillo in Batangas.
Total sales reservations reached P73.7 billion, equivalent to P12.3 billion in average monthly sales during the first six months.
This was a 4% increase from the average monthly sales of P11.8 billion for the full year of 2024.
The premium residential segment accounted for the highest share of sales, at P40.6 billion, while sales of commercial and industrial lots increased by 7% to P8 billion.
The core residential business generated P25.1 billion in first-half sales.
ALI said revenue from its leasing and hospitality group rose by 5% to P23.2 billion.
Shopping center revenue increased by 5% to P11.6 billion, led by rising contributions from core and new malls.
Office leasing revenue grew by 5% to P5.9 billion, supported by a solid single-digit vacancy rate across the portfolio.
Hospitality revenue reached P4.9 billion on the back of healthy occupancy, while industrial real estate revenue rose by 60% to P762 million due to incremental income from new facilities.
ALI said capital expenditure for the first semester reached P40.2 billion.
Of the total, 42% was spent on the build-out of residential projects, 25% on the completion of leasing and hospitality assets, 23% on the priming and development of mixed-use estates, and 10% on continuing payments for land acquisition commitments.
ALI shares fell by 2.60% or 70 centavos to P26.20 apiece on Wednesday. — Revin Mikhael D. Ochave
