AYALA LAND TO FURTHER EXPAND LAND INVENTORY
By Doris C. Dumlao
Philippine Daily Inquirer
August 11th, 2013
Ayala Land Inc. expects to sustain robust growth in its property business in the second semester, as it expands further its land inventory while unlocking more values out of its existing projects. In the first semester, ALI booked P4.2 billion in revenue from the sale of commercial lots in the Food Terminal Inc. property in Taguig City, ALI chief finance officer Jaime Ysmael said in a briefing last week. “We have a few more lots that we should be able to sell,” Ysmael said, adding that ALI was reserving for its own portfolio 50 hectares out of the 74 hectare of land it acquired from the government last year. FTI is dubbed as ALI’s “Arca South” project.
FTI lot sales accounted for the bulk of ALI’s total earnings from the sale of commercial and industrial lots which increased by 307 percent year-on-year to P5.18 billion in the first semester. In the first quarter of the year, alone, ALI sold FTI lots worth P3.5 billion. FTI is the single biggest landbank acquired by ALI since taking over the Bonifacio Global City project in 2003. This accounted for the bulk of the company’s landbanking cost last year. Ysmael said ALI was keen on further expanding its land inventory, expecting to end the year with 6,900 hectares, up from 5,400 hectares as of the end of 2012. “We’ll continue acquiring new and replenishing (our stock),” he said.
ALI boosted its six-month net profit by 30 percent year-on-year to P5.62 billion as the company unlocked higher earnings from property development, commercial leasing and construction businesses. Asked whether ALI could sustain this growth trend, Ysmael said: “the environment remains favorable, the economy remains driven by infrastructure spending and consumption story remains very strong,” he said. “(Product) launches will also accelerate in the second half and that should provide the fresh inventory that will feed our sales force,” he said. ALI’s four residential brands launched a total of 10,130 units in the first six months of the year, worth P30.64 billion. As an indicator of future earnings growth from its residential business, ALI’s sales take-up value for the first six months reached P43.79 billion, equivalent to an average monthly sales take-up of P7.3 billion, an all-time high. Apart from growing its residential portfolio, expanding the office property segment is part of the company’s growth strategy. The goal is to triple the office portfolio in the next five years, catering mostly to the business process outsourcing (BPO) market. About 279,000 square meters of additional BPO office will be in various stages of completion during the year, Ysmael said.
ALI GROWTH MOMENTUM SEEN TO CONTINUE IN H2
By Neil Jerome C. Morales
(The Philippine Star)
Updated August 12, 2013
MANILA, Philippines - Property giant Ayala Land Inc. (ALI) expects to continue its growth momentum in the second half on the back of more project launches and strong demand. The listed property firm is also gearing up for land banking and new development opportunities for next year, a top company executive said over the weekend. “We expect the trend to continue. It’s been a very good first half so far, the sales continue to be up,” ALI chief finance officer Jaime Ysmael told reporters.
“The environment remains favorable and the economy continues to grow, driven by remittances, outsourcing and infrastructure spending,” Ysmael said. Net income of ALI surged 30 percent to P5.62 billion in the first six months from P4.33 billion in the same period last year as consolidated revenues rose 36 percent to P36.63 billion from P27 billion a year ago.
“Our performance is very much aligned on how the country performs. And the demand continues to be very high,” Ysmael said. For instance, the development side of the business picked up as monthly average turnover hit P8 billion compared with P6 billion a year ago. To cope with demand, ALI is beefing up its current inventory by accelerating its project launches in the second half, Ysmael said. The expected growth in the second half will be supported by a back-ended capital spending.
In the first semester, ALI spent P23 billion, or 24 percent higher than last year’s P18.75 billion. The property giant earmarked P65.5 billion this year for the completion of ongoing developments and launch of 69 new projects with a combined value of P129 billion.
Meanwhile, ALI is looking at a P6-billion bond issuance next month through its units Alveo Land Corp. and Avida Land Corp. Last last month, ALI raised P15 billion through the issuance of 10-year bonds. To continue the growth momentum, the property giant is already lining up plans for new projects. ALI expects to end the year with a land bank of around 6,500 hectares, up from 5,400 hectares at the end of 2012.
“A lot of them are already in the pipeline, in various stages of negotiations so it will still be a major component of our funding plan for the year,” Ysmael said.
Ysmael said the property firm sees a lot of opportunities in the various areas within and outside Metro Manila, especially locations that are beneficiaries of public-private partnership infrastructure projects. So far, ALI is threshing out last minute issues for the 60-hectare Plastic City property of the Gatchalian family in Valenzuela City. The prime lot used to house the country’s biggest fully-integrated plastic manufacturing complex.
ALI is also planning to jumpstart property projects in the 54-hectare portion of the 74-hectare Arca South (formerly Food Terminal Inc.) property in Taguig next year. In the first half, revenues from the sale of commercial and industrial lots surged 307 percent to P5.18 billion mainly attributed to the P4.1-billion sale of commercial lots in the Arca South property.