Ayala Land (ALI) Q3 2024 earnings summary

Executive summary

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

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

• Inventory levels improved to 18 months, with RFO units at 12% of inventory and cancellation rates down to 8%.

• CapEx for the period reached PHP 51.9 billion, focused on estate buildout, property development, and leasing/hospitality assets.

Financial highlights

• Consolidated revenues increased by 27% year-on-year to PHP 125.2 billion; net income attributable to equity holders grew 15% to PHP 21.2 billion.

• EBIT margin at 33.9%, down from 36.4% last year but within the 30%-35% target range.

• Interest expense rose 14% to PHP 11.5 billion due to higher borrowing rates and balances.

• Net gearing ratio improved to 0.70:1; debt-to-equity ratio at 0.76.

• Current ratio at 1.77; interest coverage ratio at 5.3x.

Outlook and guidance

• Full-year CapEx tracking at PHP 85 billion, below the PHP 100 billion budget due to deferred launches.

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

• Double-digit growth in launches forecasted for 2025, with increased focus on the core segment and a 50%-60% vertical project mix.

• Mall reinvention projects ongoing, targeting 40% completion by year-end and full completion by 2026.

• Leasing operations expected to benefit from new mall and office openings and higher occupancy rates.