Property developer Ayala Land Inc. said Tuesday it will launch P110 billion worth of projects in 2023, up 20.3 percent from P91.4 billion it started in 2022, as real estate demand continued to be resilient despite the high interest-rate environment.
ALI president and chief executive Bernard Vincent Dy said in a briefing the group was prepared to upsize the launches to P130 billion, “if the market comes in stronger than anticipated.”
Dy said the company also earmarked P85 billion in capital expenditures for 2023, up 14 percent from the P72.4-billion actual spending last year.
“Despite ongoing challenges in the operating environment, we remain positive in our outlook for 2023 and look forward to introducing new offerings that will meet the evolving needs of the market,” Dy said.
ALI said net income climbed 52 percent in 2022 to P18.6 billion from P12.2 billion in 2021 on the back of the strong recovery of residential and leasing businesses.
Consolidated revenues grew 19 percent to P126.2 billion from P106.1 billion.
Revenues from property development climbed 7 percent to P81.2 billion, boosted by strong fourth-quarter sales which rose 24 percent to P27.6 billion.
Reservation sales in 2022 rose 14 percent to P104.9 billion on strong demand from local and overseas Filipinos.
Office-for-sale revenues went down by 16 percent in 2022 to P3.2 billion with the completion of Alveo’s Park Triangle Tower at BGC and the moderate take-up on remaining limited inventory.
Sales from commercial leasing business rebounded by 62 percent year-on-year to P33.4 billion, with normalized mall rents and foot traffic, the contribution of new office spaces and higher hotel room rates.
Revenues from shopping centers and hotels doubled to P16.1 billion and P6.2 billion, respectively following the resurgence in foot traffic and mobility.
Revenues from office leasing improved by 13 percent to P11.1 billion, with the added contribution from One Ayala East and West Towers.
“We are encouraged by our solid performance in 2022, driven by the full reopening of the Philippine economy and the support of our customers,” Dy said.
ALI launched two new estates in 2022, including the 92-hectare Areza in Lipa City, Batangas and 83-hectare Crossroads in Plaridel, Bulacan.
