Ayala Land (ALI) Q3 2024 earnings summary

Executive summary

• Consolidated revenues for the first nine months of 2024 rose 27% year-over-year to PHP 125.2 billion, with net income up 15% to PHP 21.2 billion, driven by resilient property demand, strong residential bookings, and healthy leasing operations.

• Capital expenditures reached PHP 51.9 billion, mainly for estates, property development, and leasing/hospitality assets.

• Robust performance across property development, leasing, and services segments supported topline growth.

• Residential reservation sales increased 17% to PHP 100.5 billion, with inventory levels down to 18 months, below industry average.

• Net proceeds from AREIT share sales and bond issuances used for project funding and debt refinancing.

Financial highlights

• Property development revenues up 34% to PHP 76.6 billion, led by 35% growth in residential and 51% in commercial/industrial lots.

• Leasing and hospitality revenues rose 8% to PHP 33.2 billion; shopping center and office leasing both up 7%, hotels/resorts up 13%.

• Service businesses grew 54% to PHP 12.8 billion, with construction revenues nearly doubling.

• EBIT margin at 33.9%, down from 36.4% last year but up sequentially from 31.8% in H1.

• Net gearing improved to 0.70:1 from 0.73:1; interest coverage ratio at 5.3x.

Outlook and guidance

• Full-year CapEx expected at PHP 85 billion, lower than initial guidance due to staggered launches and deferred costs.

• Launches for the year projected at PHP 80 billion, with 90% of remaining projects awaiting license to sell.

• Expecting double-digit growth in launches for 2025, with increased focus on core segment and horizontal projects.

• Residential demand remains resilient, with premium vertical products leading recovery.

• Performance is expected to remain aligned with the country's economic standing; interest rate fluctuations may impact the real estate sector.