BANKING on the thriving outsourcing business and active consumer spending, property giant Ayala Land Inc. (ALI) is set to double the gross leasable area in its commercial developments next year, a company official disclosed over the weekend.
In a press briefing, Ayala Land Chief Finance Officer Jaime Ysmael said ALI would be launching new projects on hotels, malls, and offices next year, as the company tries to expand its property portfolio and, thus, its leasing income.
“It’s really our intent to effectively increase our leasing income,” Ysmael said. “We’re consistent with the 2020-40 plan, wherein by 2020, we expect to increase our net income to P40 billion.”
Earlier, ALI reported a first-nine-month commercial revenue of P17.2 billion this year, up 12 percent from a year ago. The receipts came from ALI’s shopping centers, offices, hotels, and resorts.
Ysmael said that the expansions would be in the company’s existing locations. Some of the areas he mentioned were Makati, Bonifacio, Quezon City, Nuvali, Cebu and Porac in Pampanga. He also cited areas in the Visayas and Mindanao, such as Bacolod, Davao, and Cagayan de Oro.
“Those are the major areas where will be concentrating a lot of our developments,” Ysmael said.
Stressing that ALI is hoping to achieve a balance between development and recurring income, Ysmael added, “The recurring income is something we’re expanding aggressively by building more malls, offices, and hotels. So, I think, based on the latest plans, we will be expanding the gross leasable area by a factor of, maybe, 2.7 times.”
With just two months left in 2015, Ysmael said ALI is expecting to spend less than the P100-billion it had earmarked for capital expenditure (capex) this year.
ALI has so far spent P60 billion on capex as of end-September.
“We spent P60 billion for the first nine months. So more likely, we’ll be below a hundred within the year,” said Ysmael, declining to give figures on the company’s capex for 2016.
He hinted, though, that it would be slightly higher than this year.
“We’re still finalizing our budget,” Ysmael said. “We’ll let you know what the CAPEX plan will be in the beginning of next year, once we release our earnings results for the full year.”