ALI optimistic its business will improve this year

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Real estate giant Ayala Land Inc. is now ready to open new malls and pursue the construction of new ones as it becomes more optimistic that consumers are going out again as the economy reopens.

ALI Chairman Fernando Zobel de Ayala during the firm’s annual stockholders’ meeting noted that declining Covid cases, the ongoing vaccination booster rollout and improving indicators support recovery prospects.

“Mortgage rates have remained affordable, supported by flexible payment terms. Local consumption continues to be strong comprising close to 70 percent of the GDP,” he added.

“Also Overseas Filipino remittances and BPO revenues continue to be important than versus the economy. All these prospects provide us with optimism for the future,” Zobel said.

ALI President Bernard Vincent Dy said “I believe that all our major businesses will remain relevant post pandemic. Some will even benefit from the changes in consumer preferences.”

“While a few businesses will require a higher level of reinvention with changes that we need to implement quickly. New opportunities have also been crystallized, which we will pursue aggressively,” he added.

Dy said that, “With reduced Covid cases, high vaccination rates, and improved mobility, I am optimistic that our country is on course for resurgence and we are positioned to accelerate our V-shaped recovery.”

“Local consumption remains strong in our nation’s favorable demographics, a growing middle class, and a young working class will support growth over the medium to long term,” he noted.

Given the improving situation, Dy said ALI is now planning to open new commercial facilities with the first being the retail space at the Ayala Triangle Gardens as well as the 11,000 square meters in the phase one of Vermosa mall in Cavite.

“We have close to about 300,000 square meters of mall space under construction and we expect to open these facilities from now until 2026,” he said.

Dy said that, as of April, foot traffic in all of ALI’s malls have risen by an average of 70 percent while merchant same store sales are up 80 percent.

“So we believe that the malls business is on its way to recovery and barring any more lockdowns or surges or strict, strict mobility restrictions, we believe and we hope that the business will continue to move and hopefully reach near pre pandemic levels by the person by by Christmas season,” he said.

Meanwhile, ALI is seeing strong demand for its hotel rooms, primarily from domestic business travel, as well as domestic leisure travel.

In March, Ayala Land recorded around 45 percent occupancy in all its hotel rooms since the alert level one category for people’s restriction was imposed.

“In April, we’re seeing that continuing trend of increasing occupancy. We’re also seeing an increase in the room rates that we’re able to charge for hotels and resorts,” said Dy.

He added that, “Moving forward again, we’re very hopeful that that trend will will continue again barring any kind of lockdowns or mobility restrictions for travel restrictions. And we’re hopeful that the business will put up particularly as foreign business travel and foreign leisure travel, come back in more meaningful way in our country.”

In the office segment of its business, ALI has not seen “any kind of meaningful contraction or departure” from any of its four major tenants for business process outsourcing (BPO) firms and traditional corporates locators.

Dy said Ayala Land continues to see BPO expansions in its sites, as well as traditional space occupiers moving to newer buildings like Ayala Triangle Tower two as well as One Ayala.

“So moving forward for the year, we expected that vacancy rates will be meaningfully reduced, and therefore, our revenues for the office segment should increase in 2022 as compared to 2021,” he said.

SOURCE:

Ayala group investing P 13.6B in BPI’s new head office

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By: Doris Dumlao-Abadilla – Reporter 

SOURCE: https://business.inquirer.net/343458/ayala-group-investing-p-13-6b-in-bpis-new-head-office

The Ayala group is investing about P13.6 billion to build the new head office of Bank of the Philippine Islands (BPI) along Ayala Avenue in Makati—designed to be a 45-story “iconic, elegant and green” skyscraper that will symbolize the storied conglomerate’s solid commitment to the country.

“This investment will help spur growth in the Philippine economy, spur many business activity and provide much needed employment opportunities for Filipinos,” Jaime Augusto Zobel de Ayala, chair of BPI and Ayala Corp., said during the ground-breaking ceremony for the “grade-AAA” building on Tuesday.

This real estate redevelopment project is a partnership between BPI and Ayala Land Inc. (ALI), with a respective economic interest of 51 percent and 49 percent, respectively.

The project will create 1,800 new jobs, Zobel said, referring to the manpower needed to construct the building, which will be completed in the fourth quarter of 2029 and ready for occupancy by 2030.

Redefining the skyline of the Makati central business district, the future headquarters of Southeast Asia’s oldest bank will rise on its 5,599-square meter (sq m) lot at the corner of Ayala Avenue and Paseo de Roxas at an estimated height of 224 meters. It will have a gross floor area of 89,000 sq m, of which 60,000 sq m will be leasable.

The building can accommodate about 6,500 office workers from BPI and other corporate tenants.

Zobel said this new skyscraper would “symbolize our confidence in the future and Ayala group’s contribution to building a better Philippines.” He added that this demonstrated the group’s conviction that despite the challenging times caused by the two-year COVID-19 pandemic and the conflict in Europe, “Philippines will see brighter times ahead.”

BPI president Teodoro Jose Limcaoco said the future BPI head office would become “not just as workplace but an “environment where we can all learn, we can all grow and build lasting relationships.”

Based on today’s leasing rate of about P1,500/sqm month for office space in the Makati central business district, ALI may generate about P45 million per month in recurring leasing revenues from its share of half the leasable space in the project (about 30,000 sqms), ALI president Bernard Vincent Dy said in a joint press briefing with Limcaoco.

This suggests that the project can add about P540 million in annual rental revenues to ALI, without pricing in annual rental escalation.

As the building is not registered with the Philippine Economic Zone Authority (Peza) given the moratorium in the issuance of new accreditation, Dy said the property would likely attract more multinational country head office and other locators, rather than business process outsourcing (BPO) firms. However, he said the group would seek Peza accreditation once such option was available.

The building itself will have an energy-saving, 100 percent glass facade. Located at the heart of the Makati Central Business District at the corners of Ayala Avenue, Paseo de Roxas, and Dela Rosa, the masterplan maximizes land efficiency while providing a generous civic space that seamlessly connects to Makati’s underground and elevated walkways.

At the street level, the property will have an 800-sqm civic space for the public to “stimulate progressive thinking.”

The plan was conceptualized by global design firm Skidmore, Owings & Merrill (SOM) in collaboration with the architect-of-record, Aidea Philippines Inc.


Ayala Land sets P100-B in projects for this year

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SOURCE: https://business.inquirer.net/342158/ayala-land-sets-p100-b-in-projects-for-this-year

By: Doris Dumlao-Abadilla – Reporter / @philbizwatcher

Philippine Daily Inquirer / 04:30 AM March 02, 2022

Property giant Ayala Land Inc. (ALI) plans to bring to the real estate market P100 billion worth of new inventory this year, regaining the kind of expansion appetite last seen prior to the COVID-19 pandemic.

ALI posted a 40-percent growth in net profit last year to P12.2 billion, driven by higher property development and office leasing revenues. This attained 92 percent of the P13.24-billion net income that Bloomberg market consensus expected the firm to deliver for the year.

Compared to prepandemic earnings, ALI’s 2021 bottom line accounted for 37.4 percent of the P33.19-billion net profit posted in 2019.

For the fourth quarter alone, ALI’s net income reached P3.6 billion, 52 percent higher year-on-year and 54 percent higher quarter-on-quarter.

“Our focus in 2021 was to ensure we provided the right environment in our communities for our residents, businesses and institutional locators to adapt and function better while executing our business recovery plans. As the economy moves to full reopening in 2022, we look forward to the acceleration of our business activity backed by our land bank, diversified portfolio and market-leading estate developments,” said Bernard Vincent Dy, ALI president and CEO.

Capital spending hike

In an investors briefing on Tuesday, ALI chief financial officer Augusto Bengzon said the group’s capital spending this year would increase to P90 billion, rising from P64 billion last year.

Residential projects will account for 49 percent of capital outlays this year, followed by estate development which will account for 18 percent. Land acquisition will have a budgeted share of 19 percent. Mall developments will account for 5 percent, while hotel and resorts as well as offices will each have a share of 2 percent.

For the new product launches with an estimated value of P100 billion, the Alveo brand will have the biggest share at 38 percent, followed by Avida and Ayala Land Premier with 25 percent and 24 percent, respectively. In terms of location, South Luzon will have the biggest share at 43 percent, followed by Metro Manila with 33 percent.

“With the full reopening [of the economy], we see or anticipate increased demand from the renewed confidence and, as such, we are planning to launch P100 billion worth of projects,” Dy said.

Last year, ALI rolled out 22 projects valued at P75.3 billion, seven times more than the rollout in 2020 at the peak of local lockdowns.

Rising revenues

In 2021, ALI’s revenues increased by 10 percent to P106.1 billion, as property development revenues grew by 14 percent to P75.9 billion on the back of construction progress and higher project bookings. Most of the revenue buildup commenced in the fourth quarter as it grew by 40 percent to P24.4 billion from the third quarter.

upported by relaxed quarantine restrictions in the fourth quarter, total revenues sequentially grew by 2 percent to P33.5 billion.

As an indicator of future revenue growth, sales reservations for the year reached P92.2 billion, up by 13 percent from the level in 2020. This was mainly attributed to solid demand for lots in Southern Luzon by Ayala Land Premier and Alveo.

Sales reservations from lot sales alone jumped by 36 percent to P41.5 billion during the year. In the fourth quarter, sales grew by 5-percent year-on-year to P22.1 billion. INQ

AREIT posts 56% net income in 2021

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By Faye Almazan

THE real estate investment trust (REIT) of Ayala Land, AREIT Inc., posted higher full-year profit and revenues last year.

In a filing to the exchange on Monday, the company reported a 56-percent better net income of P2.27 billion in 2021.

AREIT noted the figure excludes the net fair value change in investment properties of P165 million.

Stable operations prompted the company’s full-year revenues to rise by 63 percent to P3.32 billion last year as its occupancy and rental collection rates both ended at 98 percent during the period.

Meanwhile, its full-year dividends were declared at P1.77 apiece in 2021, up 34 percent from last year and 12 percent more than its REIT plan projection.

Last year, AREIT’s total gross leasable area (GLA) stood at 549,000 square meters (sqm), while its assets under management (AUM) was at P53 billion.

In its new three-year strategy, AREIT targets to reach P60 billion in AUM this year and increase its asset portfolio at an average of 100,000 sqm in GLA in 2023 and 2024.

“The company maintains its thrust to grow and diversify its asset portfolio by sector, location and income contribution and achieve a total shareholder return range of 10 to 12 percent,” the company said.

Shares of AREIT inched up by 30 centavos or 0.61 percent to close at P49.30 each on Monday.

SOURCE:

https://www.manilatimes.net/2022/03/01/business/corporate-news/areit-posts-56-net-income-in-2021/1834631

Ayala Land and putting it’s best Christmas foot forward

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We may be on Alert Level #2, but that doesn’t mean we can’t be spreading Christmas joy and cheer this year. If last year, in the midst of more stringent protocols, we saw Ayala Land forging ahead with a virtual edition of their annual Ayala Triangle / Make It Happen, Make It Makati Festival of Lights, this 2021 sees a bigger and brighter virtual edition being presented. A media event highlighting this ‘bigger and brighter’ was a full blown happy reunion for most everyone involved, and those attending the online event.

Alagang AyalaLand

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AYALA Corp. Chairman Jaime Augusto Zobel de Ayala leads the inauguration of an Alagang AyalaLand Center for social enterprises at TriNoma in Quezon City. The center is one of 32 Ayala Malls with Alagang AyalaLand Centers supporting more than 400 social enterprises and generating at least 4,000 jobs for the community. It showcases the Sinag Sari-Sari Social Enterprise Store, a joint project of Alagang AyalaLand, BPI Foundation, and Bayan Academy that aims to support the growth of social enterprises, create livelihood and jobs, and aid in the country’s road back to recovery. BPI Foundation with its implementing partner, Bayan Academy, organized the participating Sinag merchants who in turn help local and marginalized communities. The project is an enhancement of the Sinag program made possible through Alagang AyalaLand that provides market access in rent-free spaces in Ayala Malls. With Mr. Zobel are: (from left) Ayala Malls President Chris Maglanoc, Ayala Land Board Member Tony Aquino, Ayala Land President and CEO Bobby Dy, BPI President and CEO TG Limcaoco, Bayan Academy Chairman and President Professor Jay Bernardo, BPI Chief Customer and Marketing Officer Cathy Santamaria, and BPI Vice-President and Deputy Head of Marketing Mariana Zobel de Ayala.

ACEN to supply power to Ayala Land

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Listed firm AC Energy Corporation (ACEN) will be providing electricity supply generated from its renewable energy (RE) facilities to the real estate developments of its affiliate firm Ayala Land Inc. (ALI) as part of the conglomerate’s net zero target by year 2050.

https://mb.com.ph/…/29/acen-to-supply-power-to-ayala-land/

Hoping for better days ahead

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By: Amy R. Remo – Reporter / @amyremoINQPhilippine Daily Inquirer / 11:53 PM September 07, 2021

After more than a year into the pandemic, the Philippines may finally see a sustained recovery owing to new strategies that are seen to facilitate economic rebound in the near term.

As think tank Moody’s Analytics reported this week, fast-tracking the nationwide inoculation drive, incentivizing the vaccinated and imposing localized quarantine may help an economy that has been very sluggish under the weight of severe and lengthy lockdowns.

Such developments bode well for industries like real estate, which has also seen its fair share of challenges amid the devastating difficulties dealt by this protracted global health crisis. And with the onset of the so-called “-ber” months—traditionally a season that brings hope and joy to many Filipinos—one could only hope for better days ahead.

But will the Philippine real estate industry, which has seen a glorious decade of unprecedented stellar growth, finally see that proverbial light at the end of the tunnel? Will improvements in the business and consumer sentiment translate into increased demand? Are investors now more optimistic of their prospects and willing to bet big again in real estate?

Inquirer Property polled some of the country’s top officials and industry experts to give their thoughts on how the real estate industry fared in the past months, their forecasts for the last quarter of the year, and their insights as to what will be crucial for its continued recovery.

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Ayala Land bests global competition, tops 2021 International Business Awards

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SOURCE:

https://businessmirror.com.ph/2021/08/22/ayala-land-bests-global-competition-tops-2021-international-business-awards/

Ayala Land, Inc. (ALI) bested companies from around the globe as it received the most number of Stevie Award wins at The 18th Annual International Business Awards. The Stevie Award is a premier business award program that recognizes the achievements and positive contributions of organizations and working professionals worldwide.

ALI was the overall winner this year, taking home 36 Stevie Awards in total, 11 of which were Gold, 6 Silvers, and 19 Bronzes.

More than 3,700 nominations were submitted this year by organizations of various sizes and industries, and coming from 63 nations and territories around the world. Stevie Award winners were determined by the average scores of more than 260 executives worldwide who participated in the judging process from June through early August.

“Most especially in these difficult times, when all sectors of society are enduring the challenges of the global pandemic, we continue to strive for excellence within our organization in order to serve our stakeholders and the communities in the best and most effective way possible. It is our goal to drive recovery by intensifying our community engagement efforts,” said Manny A. Blas, ALI Vice President.

Among Ayala Land’s Gold Stevie Award-winning programs were its ‘Zero Waste’ Circular Waste Management Program. This unique circular economy model established a process in which waste materials such as plastics were given alternative destinations for recycling and reprocessing.

ALI’s pioneering Real Estate Investment Trust (REIT) in the Philippines, AREIT Inc., also won a Gold Stevie as Real Estate Company of the Year. Its landmark Initial Public Offering in 2020 was designed to make the Philippine property market more inclusive and accessible to Filipino investors through a best-in-class REIT.

Makati Development Corporation, the construction arm of Ayala Land, was another Gold Stevie awardee as Materials and Construction Company of the Year. It has been cited for its contributions to the creation of local employment, as well as for the various process improvements and technological innovations it has implemented company-wide. Key subsidiaries AyalaLand Logistics Holdings Corp. and Ayala Land Offices Inc. also won Gold Stevies for industry contributions and organization achievements.

The rest of Ayala Land’s awards are driven by employee, community, and nation-building initiatives.

“What we’ve seen in this year’s IBA nominations is that organizations around the world, in every sector, have continued to innovate and succeed, despite the setbacks, obstacles, and tragedies of the ongoing COVID-19 pandemic,” said Stevie Awards president Maggie Gallagher. “All of this year’s Stevie Award winners are to be applauded for their persistence and their resilience. We look forward to celebrating their achievements with them during our 8 December virtual awards ceremony.”

Ayala Land H1 profits up, but malls, hotels have yet to recover

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Ayala Land H1 profits up, but malls, hotels have yet to recover
Ramon Royandoyan (Philstar.com) – August 3, 2021 – 6:37pm

MANILA, Philippines — Ayala Land Inc. delivered a strong first-half performance this year, but its hotels, malls and resorts continued to grapple with extended pandemic restrictions.

In a disclosure to the stock exchange on Tuesday, the Ayala family’s property unit reported a net income of P6 billion from January to June, up 34% year-on-year. Six-month consolidated revenues, meanwhile, grew 19% on-year to P49 billion.

“Improvement in our performance in the first half of the year was driven primarily by our property development business, with residential demand showing resilience and construction progress driving revenue recognition,” Vincent Dy, company president and chief executive, said.

READ MORE:

https://www.philstar.com/business/2021/08/03/2117322/ayala-land-h1-profits-up-malls-hotels-have-yet-recover

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