Ayala Land Inc. (ALI), the property development arm of the Ayala Group, plans to allocate around P95 billion this year to fund business operations and expansion efforts while maintaining a healthy growth trajectory.

Chief financial officer Augusto Bengzon said during an analyst briefing on Thursday that the company will raise P75 billion through domestic debt. Of the total, P25 billion will be used to refinance maturing obligations, and P50 billion was initially set aside for new capex. 

Lower than originally planned

However, Bengzon noted that the final amount raised for capex could be lower than originally planned. 

“Most likely, we’ll go to the market for P30 billion, with half allocated to bank financing and the other half tapped from the capital markets,” he explained.

He also confirmed that the company will not tap international markets, keeping the entire fundraising within the domestic peso market.

For 2024, Ayala Land reported a 15 percent rise in net income to P28.2 billion, up from P24.5 billion in 2023. Consolidated revenues reached a record P180.7 billion, a 21 percent increase year-on-year.

ALI president and CEO Anna Ma. Margarita Bautista-Dy expressed confidence in the company’s growth. “We ended the year on solid footing, with all our business lines executing their growth strategies,” she said.

Revenue from property development rose 22 percent to P112.9 billion, driven by stronger sales in residential and estate lots. Residential sales grew 23 percent to P94.9 billion, while commercial and industrial lot revenues surged 34 percent to P14.6 billion. ALI also launched P80.5 billion in new projects, with 64 percent located outside Metro Manila.

Leasing and hospitality revenues grew 9 percent to P45.6 billion, supported by new commercial and retail spaces. Capital expenditures for the year reached P84.6 billion, with 46 percent allocated to residential projects.

Solid despite capex spending

Despite the significant capex spending, ALI maintained a solid financial position, with a net gearing ratio of 0.73:1 and an interest coverage ratio of 5.1x. The company also returned P14.8 billion to shareholders, including P7.4 billion in cash dividends and P7.4 billion in share buybacks.

For 2025, ALI aims to launch P100 billion worth of projects, with P80 billion allocated to residential developments and the remaining P20 billion for industrial and commercial projects.