Ayala Land

“Our commitment to advance the country’s development goals is best demonstrated in our investments across the various business lines. With these investments, we build sustainable communities and create products and services that enable more Filipinos to partake in the benefits of economic growth and social progress.”

- Bernard Vincent O. Dy, President and CEO, Ayala Land Inc. Ayala Land has been a strong proponent of sustainable tourism especially in El Nido, Palawan
where the Eco-Sanctuary Lagen Island is nestled.

WHO WE ARE
Ayala Land is the largest property developer in the Philippines, with a solid track record of developing large-scale, integrated, mixed-use, sustainable estates that are now thriving economic centers in their respective regions.

 

Following the success of the Makati Central Business District, Ayala Alabang, Cebu Park District, Bonifacio Global City, and Nuvali, Ayala Land continues to increase its footprint by building estates that reach and benefit more people.

 

With 12,192 hectares of landbank, 29 estates, and a presence in 57 growth centers across the country, Ayala Land offers a balanced and complementary mix of residential developments, shopping centers, offices, hotels and resorts, and other businesses. Construction and property management services are led by its subsidiaries, Makati Development Corporation and Ayala Property Management Corporation, respectively.

 

It pioneers standards and practices in all its developments that reflect the value the company places on sustainability. As a responsible corporate citizen, Ayala Land acts with integrity, foresight, and prudence.

 

Focused on its vision of “enhancing land and enriching lives for more people,” it empowers its employees to deliver quality products and services and build long-term value for our shareholders.

MARKET OUTLOOK
The Philippine economy and the macroeconomic environment provide the support for Ayala Land’s business lines to grow. A steady GDP, contributions from BPO revenues, overseas Filipino remittances, and tourism receipts drive economic activity and the development of the Philippine property sector. The Board and Management of Ayala Land also recognizes the opportunities stemming from a growing middle class, with 60 percent of the population seen to belong to the 15 to 65 year-old working segment by 2040. Furthermore, rising per capita income coupled with the availability of long-term fixed rate mortgages will continue to make residential products affordable for more Filipinos. The continued buildup of infrastructure projects will also foster connectivity and spur urbanization across the country.

 

Looking ahead to 2020, the organization is taking on a more cautious stance to growth. Ayala Land’s growth plans have always been anchored on the performance of the Philippine economy and its macroeconomic drivers. However, during risk events, the Board and Management adjust these strategies accordingly to adapt to market conditions while prioritizing help to communities, service to customers, protection of the workforce, and the survival of the company. These adjustments allow the company to capitalize on growth opportunities when the environment becomes more favorable, protecting long-term value for shareholders in the process.

BUSINESS REVIEW
ESTATE DEVELOPMENT
Ayala Land launched three new estates in 2019, enhancing its presence further in Metro Manila, Southern Luzon, and Central Luzon. These new developments will build on the established and emerging estates across the country, hastening local economic growth for more Filipinos.

 

With the launch of the new estates, the number of large-scale, integrated, mixed-use developments have reached a total of 29. This is composed of five established estates, and 24 emerging estates–seven in Metro Manila, three in Central Luzon, three in Calabarzon, six in Visayas, three in Mindanao, and two tourism estates.

 

Launched in October 2019, ALVEO-branded Broadfield is a 120-hectare mixed-use development in South Luzon’s thriving residential, leisure, industrial, and manufacturing center. Eighty hectares of Broadfield is dedicated to mixed-use and commercial spaces, while 40 hectares is allotted to residential communities, Venido and Aveia.

 

The Junction Place is an 11-hectare pocket urban development located in Novaliches, Quezon City launched in October 2019. It is envisioned as a sustainable area for commerce, recreation, and leisure in one of the city’s busiest areas. The estate will be anchored by an Amaia development which will cater to the emerging economic segement.

 

Cresendo was launched in November 2019. It will be Ayala Land’s first estate in the province of Tarlac and will feature a 30-hectare downtown area to complement the current commercial center. It will host a 32-hectare industrial park, a school by Don Bosco Technical Institute, and an Avida community.

The Alviera Country Club is designed as a modern oasis in Porac, Pampanga, featuring a sprawling landscape families can relax and bond in.

PROPERTY DEVELOPMENT
The property development business generated ₱117.6 billion in revenues from the sale of lots and units under the five residential brands, supported by sales of office units and commercial and industrial lot sales. It also includes revenues from MCT Bhd, Ayala Land’s consolidated subsidiary based in Malaysia. Property development comprised 69 percent of Ayala Land’s real estate revenues in 2019.

 

Sales reservations grew by 3 percent to ₱145.9 billion in 2019. ALVEO and Avida fueled the growth, even as AyalaLand Premier made fewer launches during the period. Ayala Land launched ₱158.9 billion worth of property development projects in 2019, surpassing its initial estimate of ₱130 billion.

 

Residential
Revenues from the sale of residential lots and units and MCT Bhd’s operations declined by 8 percent to ₱93.2 billion. The decrease was due to the lower contribution of AyalaLand Premier and ALVEO as most of their vertical projects recognized in 2019 were booked in previous periods and are now nearing completion.

 

Office for Sale
ALVEO led the growth in revenues from the sale of office units in 2019. It rose 13 percent to ₱13.1 billion from its projects such as ALVEO High Street South Corporate Plaza 2, ALVEO Park Triangle, One Vertis Plaza and Park Triangle Corporate Plaza. Capitalizing on its strong brand, ALVEO launched the Cerca Enterprise Plaza in Alabang composed of 343 units valued at ₱8.3 billion.

 

Commercial and Industrial Lots for Sale
Sales of commercial lots in key estates such as Altaraza, Vermosa, NUVALI, and Broadfield propelled revenues by 46 percent to ₱11.3 billion.
The launch of the Broadfield estate by ALVEO in 2019 will provide the pipeline for growth in commercial lot sales, building on current offerings in existing estates such as Altaraza, Arca South, Vermosa and NUVALI. Broadfield has 80 hectares for commercial use. The first phase covers 36.6 hectares, including the first tranche of 35 commercial lots which was offered to the public in October 2019.

 

COMMERCIAL LEASING
The commercial leasing business, which consists of shopping centers, office buildings, and hotels and resorts, posted ₱39.3 billion in revenues as new leasing assets increase in contribution. Commercial leasing generated 25 percent of real estate revenues. The leasing portfolio continued to expand with malls and offices totaling 2.1 million and 1.2 million sq. meters of GLA, respectively, and hotels and resorts with 3,705 rooms.

 

Shopping Centers
The shopping centers segment, represented by Ayala Malls, posted revenues of ₱22.0 billion, 11 percent higher than previous year, on the growth from newly opened malls such as Ayala Malls Feliz, Ayala Malls Capitol Central, and Ayala Malls Circuit Makati. Same-mall revenue growth registered at 8 percent.

Ayala Malls opened a record 213,000 sq. meters of GLA with the launch of Ayala Malls Manila Bay (161,000 sq. meters), Ayala Malls Central Bloc in Cebu (44,000 sq. meters), and Ayala North Exchange Retail (8,000 sq. meters). As of end-2019, total GLA of the malls business was 2.12 million sq. meters.

 

Offices
Office leasing under Ayala Land Offices posted revenues of ₱9.7 billion, 12 percent higher than the previous year’s ₱8.6 billion owing to newly opened offices: Ayala North Exchange, Capitol Central, and Circuit Makati.

At the heart of Quezon City is Ayala’s Vertis North Estate which houses a mix of residential units, a hotel, a mall and office spaces.

The completion of phase two of the Ayala North Exchange BPO Tower, Central Bloc Corporate Center 1 in Cebu, and the Bay Area Corporate Center in Paranaque added 70,000 sq. meters of GLA, bringing the total office portfolio to 1.17 million sq. meters by end-2019. During the year, Ayala Land also signed over 157,000 sq. meters of new office transactions, locking in new leases for the next five years.

 

Hotels and Resorts
Revenues from hotels and resorts grew 19 percent to ₱7.6 billion on strong patronage of Seda Ayala Center Cebu and Seda Lio. A total of 774 hotel and resort rooms were opened to the public with the completion of new properties, led by Seda Residences Makati, Ayala Land’s first Seda-branded serviced apartment, the expansion of Seda BGC, the opening of Huni Lio in Palawan, and additional rooms at Seda Lio and Circuit Corporate Residences. This brings the total number of rooms to 3,705, enabling the business to take advantage of the growing local and foreign tourists and travelers.

Emerging Leasing Formats

Co-living Space
The Flats Amorsolo and The Flats BGC offer affordable co-living options for people working in the two major business districts in the metro, Makati CBD and BGC, offering a total of 2,044 beds. In their first year of operations, The Flats Amorsolo and The Flats BGC posted occupancy rates of 96 percent and 72 percent, respectively.

 

Co-working Space
Clock In, which offers flexible, co-working and serviced office facilities for start-up, small, and mid-sized enterprises, expanded its presence to eight locations with 1,404 seats. It opened five new facilities in Quezon City, Pasig, Makati, Alabang, Muntinlupa, and Lio in Palawan.

 

SFBs and Warehouses
The standard factory buildings and warehouses for lease are operated and managed by Ayala Land’s listed subsidiary, Ayalaland Logistics Holdings Corporation. Its portfolio increased by 28 percent in 2019 to 175,000 sq. meters with the expansion of Laguna Technopark and Alviera Industrial Park, catering to various industries.