MANILA, Philippines —The continued recovery of its core businesses caused profits of Zobel-led Ayala Land Inc. to swell by 32 percent to P24.5 billion last year.
This figure serves as the foundation for the property giant’s goal to double net income to nearly P50 billion by 2028.
In a stock exchange filing on Tuesday, Ayala Land said earning growth was fueled by “robust property demand and heightened consumer activity”. This was seen across its real estate sales and leasing and hotels divisions.
“Ayala Land was well-positioned to take advantage of opportunities from an improving market in 2023, enabling us to meet our objectives for the year,” Ayala Land President and CEO Ms. Anna Ma. Margarita Bautista-Dy said in a statement on Tuesday.
“With our focus on quality, we look forward to bringing more high-value development products to market and embarking on the reinvention of our malls, hotels, and resorts for our customers to enjoy,” she added.
Renovation of flagship malls
During the past year, property development revenue grew 14 percent to P92.3 billion as Ayala Land completed new residences and offices.
Overall leasing and hospitality revenue also climbed by 25 percent to P41.7 billion.
Ayala Land, which recently announced plans to refurbish and expand four flagship malls in Metro Manila and Cebu, underscored the growth of shopping center revenues, which grew 31 percent to P21.1 billion.
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The hotel segment also surged 42 percent to P8.8 billion, closing in on office leasing revenues, which expanded by 6 percent to P11.8 billion.
The revenue outlook for residential sales remained healthy, as reservation revenues grew by 9 percent to P113.9 billion.
Ayala Land launched 14 projects in the fourth quarter of 2023 with a combined value of P39.6 billion. Projects include the upscale Park Villas in Makati City and the expansion of its gated communities.
New property dev’t projects
“These new projects brought Ayala Land’s total launches to 25 projects valued at P75.9 billion in 2023,” the builder said.
READ: New Ayala Land CEO hinges profit ambition on mall expansion plan
Ayala Land opened Ayala Malls One Ayala in the Makati central business district and the first phase of Ayala Malls Vermosa in Cavite, adding 49,000 sqm of retail space; Seda Manila Bay and the second tower of Seda Nuvali with 420 hotel rooms.
Ayala Land also earns from so-called service businesses such as construction, property management, and airlines. These grew 36 percent to P11.5 billion in 2023. Moreover, construction arm Makati Development Corp’s net construction revenues from external projects increased by 56 percent to P6.6 billion.
The builder rolled out four estates in 2023: the 55-hectare (ha) Batangas Technopark at Padre Garcia, the 32-ha Centrala at Angeles City, Pampanga, the 800-ha Southmont at Silang, Cavite, and the 62-ha Arillo at Nasugbu, Batangas.