Ayala Land earmarks bigger capex for 2023

MANILA, Philippines — Ayala Land Inc. proved bullish on the prospects of the domestic economy in 2023, as it looked to spend more in capital expenditures this year.

This, as the Ayala-led company saw its fortunes improve as the Philippines economy reopened in 2022.

In a briefing on Tuesday, ALI said it is looking to spend P85 billion on capital expenditures in 2023. This was higher than the P72.4 billion it spent in the previous year, wherein half was used to fund projects in its residential segment.

ALI estimated 39% of the 2023 budget will be spent on its residential segment.

“If market comes in stronger than expected, we’re planning to launch P110 billion in products,“ Bernard Vincent Dy, company president and chief executive, said in the briefing.

The company said a chunk of those launches will be developing its South Luzon (45%) and Metro Manila properties (40%).

That said, Ayala Land Inc. reported its net income surged 52% year-on-year to P18.6 billion in 2022.

Revenues rose 19% on an annual basis to P126.6 billion.

The property segment of the Ayala group saw reservation sales grew 14% on-year to P104.9 billion.

Likewise, the boons of a reopened domestic economy was seen in its commercial leasing segment. ALI reported revenues soared 62% year-on-year to P33.4 billion.

The company took advantage of the resurgence in consumer spending, which gave the domestic economy life in 2022 as brutally high inflation took hold.

Improving mobility and ALI malls charging tenants full rent contributed to the uptrend, so did new office space and increased hotel room rates. Base effects and the Philippine economy’s reopening doubled revenues of its malls and hotel segment to P16 billion and P6.2 billion in 2022.

Shares in ALI closed 0.52% down to P28.95 apiece on Tuesday.