Ayala Land Inc., one of the largest property developers in the country, said Wednesday first half net income soared 15 percent to P13.1 billion on strong demand in the property sector and active consumer engagement.
Consolidated revenue reached P84.3 billion, fueled mainly by the 34 percent increase in property development revenue to P51.9 billion. Residential revenue surged 40 percent to P43.7 billion while commercial and industrial lot revenue rose 19 percent to P6.3 billion.
Office-for-sale revenue posted a 15 percent decline to P1.8 billion due to lower incremental completion of projects.
“Ayala Land is hitting its growth targets across all business lines and market segments. Residential sales have outperformed expectations, and we will continue to focus on capital efficiency while delivering elevated and differentiated experiences to our customers,” said Ayala Land president and chief executive officer Anna Ma. Margarita Bautista-Dy in a statement.
Residential reservation sales in the first half of 2024 increased by 17 percent to P68.4 billion. Second-quarter sales rose 15 percent to P35 billion, driven by strong performance in premium and vertical segments. The projects include Ayala Land Premier’s Park Villas in Makati CBD, The Courtyards Phase 3 in Vermosa, and Alveo’s Park East Place in BGC.
Ayala Land launched projects valued at P33.7 billion, with 92 percent from premium brands and 52 percent in horizontal developments. Key launches in the second quarter included ALP’s Miravera Phase 2 in Altaraza, Anvaya Seabridge Residences Building A in Bataan, and Alveo’s Orean Place Tower 3 in Quezon City.
Leasing and hospitality revenue grew 10 percent to P22.1 billion, supported by higher occupancy rates at Ayala Malls Manila Bay, One Ayala Mall, and Seda properties. Shopping center revenue increased by 8 percent to P11.1 billion, office leasing by 6 percent to P6.1 billion, and hotel and resort revenues accelerated by 19 percent to P5.0 billion.
Ayala Land service businesses, including construction, property management, and airlines, saw revenue increase 51 percent to P8.4 billion. Makati Development Corp. doubled net construction revenue to P5.5 billion as it secured additional external contracts. AirSWIFT and other service divisions generated P2.9 billion, a 2 percent increase year-on-year.
Ayala Land said capital expenditures in the first half totaled P36.5 billion, with 51 percent directed towards residential projects, 27 percent to estate development, 11 percent to commercial leasing assets, and 11 percent to land acquisition.
In mid-July, Ayala Land closed a pioneering P20.5 billion debt issuance under its Sustainability-Linked Financing Program, including the P6 billion sustainability-linked bond listed on the Philippine Dealing and Exchange Corp. and a P14.5 billion sustainability-linked loan from the International Finance Corp., marking a first for the Philippine real estate sector and aligning with international sustainability guidelines.
