Ayala Land eyes Php90-B capex in 2016

By Leslie D. Venzon

MANILA, Nov. 15 (PNA) — Property giant Ayala Land Inc. (ALI) is planning to earmark up to Php90 billion in capital expenditures for 2016 to support continued aggressive expansion program.

ALI Chief Financial Officer Jaime Ysmael said the company aims to launch residential projects worth over Php90 billion next year.

“We are (also) expanding our investment property portfolio so malls, offices and hotels are really being expanded aggressively. So I think there will be a lot of new launches in those sectors… We are still finalizing the (2016) budget,” he said in an interview.

Ysmael bared plans to put up more projects in key growth centers where it has acquired landbank including Makati, Bonifacio Global City, Nuvali in Laguna, Pampanga, Iloilo, Bacolod, Davao and Cagayan de Oro.

He noted that the company has been expanding its leasing/recurring revenues by building more malls, offices and hotels in line with its aim to achieve a balance between its development income and commercial sales.

“It’s really our intent to effectively increase our leasing income. We are consistent with the 2020-40 plan, where by 2020, we expect to increase our net income to Php40 billion… We are pretty much on track,” he added.

To achieve its Php40-billion profit goal, ALI is optimistic of maintaining its growth trajectory in the next five years until 2020.

Ysmael said it is anchoring its businesses on economic drivers, noting the country’s robust gross domestic product (GDP) growth fueled by remittances and business process outsourcing activity.

“Tourism continues to be good particularly domestic tourism. Interest rate continues to be at historic low. And the income levels continue to grow and the middle class continues to increase… So overall, those indicators bode well for our different business lines. Of course, it will be an election year so hopefully things continue,” he said.

This year, Ysmael further said the property developer achieved a 19-percent in profit consistently over the last three quarters.

Its net income reached Php7.3 billion in the third quarter, bringing the January to September figure to Php17.7 billion from Php14.1 billion during the same period last year.

“So hopefully, we can sustain that kind of growth. We still expect the fourth quarter to manifest the same behavior relative to the first three quarters,” he said. (PNA)