Major property developer Ayala Land Inc. has earmarked P90 billion in capital expenditures this year, up 40.6 percent from P64 billion spent in 2021, as it plans to launch P100-billion worth of new projects.
Ayala Land president and chief executive Bernard Vincent O. Dy said the company’s business units are expected to perform well this year amid the economic recovery.
“Barring any new surge and any new lockdown, the Philippines will resume its growth trajectory in 2022 and this economic pick up will favorable to Ayala Land, as well as the whole economy and the whole business sector. So we remain very positive in our outlook for 2022 for all our business lines,” Dy said.
Ayala Land will allot the bulk of the P90-billion capital expenditures for residential development, land acquisitions and estate development.
Meanwhile, Ayala Land reported that net income in 2021 surged 40 percent to P12.2 billion as more relaxed quarantine restrictions resulted in higher residential sales. Consolidated revenues rose 10 percent to P106.1 billion.
Net income in the fourth quarter climbed 54 percent to P3.6 billion while revenues inched up two percent to P33.5 billion.
Revenues from property development, which includes sales from residential, office, commercial and industrial lots, climbed 14 percent to P75.9 billion.
Reservation sales for the year reached P92.2 billion, a 13-percent growth from last year’s, mainly from solid demand for lots in Southern Luzon by Ayala Land Premier and Alveo.
Fourth-quarter reservation sales also rose five percent to P22.1 billion from the same period in 2020, reflecting confidence in the local residential market.
Ayala Land in 2021 launched 22 projects worth P75.3 billion during the year, seven times more than in 2020.
Full-year commercial leasing revenues amounted to P20.6 billion, down five percent from a year ago, as malls, hotels and resort operations remained limited for most of the year.
Mall foot traffic for the whole year of 2021 stood at 38 percent of pre-COVID levels. However foot traffic rose to 60 percent of pre-COVID levels during the fourth quarter of the year.
Tenant sales for the full year of 2021 reached 54 percent of pre-COVID level and improved to 78 percent in the fourth quarter.
Office leasing revenues remained stable, increasing five percent to P9.9 billion.
“As the economy moves to full reopening in 2022, we look forward to the acceleration of our business activity backed by our landbank, diversified portfolio, and market-leading estate developments,” Dy said.