PROPERTY giant Ayala Land, Inc. (ALI) is programming a 21-percent increase in capital expenditure (capex) in 2018 to fund the development of more projects across the country.
“Our capex projection is P111 billion, which is significantly higher than the actual spending last year, so it’s going to be another all-time high in terms of capex and that’s really an indication of the opportunities that we see, optimism in the market,” ALI President Bernard Vincent Dy told a news conference in Makati City on Wednesday.
The company’s actual spending last year hit P91.4 billion.
ALI said it is set to launch P100 billion worth of residential projects and P25 billion worth of leasing assets as well as offices, while in the pipeline are two new estates—a pocket estate in Quezon City and another in the southern part of the country.
It will also open the 23,000-square-meter (sqm) One Bonifacio High Street in March and the 54,000 sqm Circuit Mall in June.
In the second quarter of this year, ALI is set to launch a 15-story dormitory tower called The Flats Amorsolo, while three more are still under completion over the next three years in Makati and Bonifacio Global City.
Two hotels, meanwhile, will be fully operational this year — the first phase of Huni Sicogon in March that will offer 19 rooms and the Seda Lio with 53 rooms in April.
Meanwhile, upcoming offices for the year are the Ayala North Exchange HQ with a 20,000 sqm gross leasable area (GLA) in June, and the Vertis North BPO 3 with a 38,000 sqm GLA in October.
ALI said funds for the capex will come from a mixture of bilaterals (bilateral loan agreements) and debt.
“You should expect us going out into the debt [market]very soon … and we’ll also do some bilaterals because there are these banks that continue to offer us very good grades,” ALI Chief Finance Officer Augusto Bengzon said.
“We are actually coming to 2018 fairly good about the prospects of Ayala Land,” Dy said. “From 2018 to 2020, we are on track to hit P40 billion in net income.”
This year, ALI said it may issue bonds from the remaining P18 billion of its P50 billion shelf registration program that was approved by the Securities and Exchange Commission in March 2016.
ALI reported that for 2017, its net income surged 21 percent to P25.3 billion from P20.9 billion in 2016 driven by strong growth in property sales and leasing income.
Revenues increased by 14 percent to P142.3 billion from P124.6 billion in 2016 amid substantial bookings, the completion of property projects and expansion in its leasing business.