Property giant Ayala Land Inc. (ALI) will most likely peg its 2014 capital spending at the same level of its 2013 budget, which was set at nearly P70 billion, a top company official said.
Bobby Dy, ALI chief operating officer, said that the capital expenditure of the company may just be the same as what it spent this year, which may close to around P70 billion.
“In terms of capex, I suspect, we’d probably be spending something similar to what we’ve done this year. I think we’re going to close at about P70 billion this year. Our capex will be something along that area or in that kind of magnitude,” he said.
Dy added that the company will explore more opportunities within the business segments it is already in.
“What we will try to do is see where the best opportunities are and then basically allocate the P70 billion into the business segments hat we have. We will see kung gaano ba karami sa [how many projects we will allocate in the]hotel, sa office, sa residential,” Dy said.
He also said that the company may further ramp up its land banking efforts next year.
Earlier this year, ALI specified that it is going to allocate P20 billion of its P66 billion 2013 capital expenditure for land acquisition alone.
Jaime Ysmael, ALI chief financial officer, previously told reporters that the company will be spending P20 billion for land acquisition this year.
“P20 billion for land acquisition and this is out of the P66 billion capex we earmarked for this year. The P46 billion left will be used to complete all the pending projects that we have—the residential projects, malls, hotels, and offices, including the FTI [Food Terminal Inc. project],” Ysmael said.
Meanwhile, after announcing its record net income for 2012, ALI is also targeting to record higher earnings this year.
“We’d like to stick to continuous banner record,” said Antonino Aquino, ALI president and chief executive officer.
He said that the company has put a strategy in place to register a higher income this year, but this still depends on how the Philippine economy will perform.