Financial Highlights


Results of Operation as of 1H 2019 versus 1H 2018

Ayala Land, Inc. (ALI or “the Company”) net income after tax (attributable to equity holders of ALI) rose 12% to P15.2 billion while total revenues increased by 4% to P83.2 billion in the first six months of 2019.

Real estate revenues grew 4% to P78.6 billion as property development revenues reached P55.6 billion, supported by the office for sale segment which grew more than two-fold to P9.8 billion. This was complemented by commercial leasing revenues which posted a 16% growth to P18.6 billion.

Capital expenditures reached P49.5 billion to support residential and leasing asset buildup.

Business Segments

The details of the individual performance of each business segment are discussed as follows:

Property Development. This includes the sale of residential lots and units, office spaces, and commercial and industrial lots, and the operations of MCT Bhd, Ayala Land’s consolidated subsidiary based in Malaysia.

Revenues from Property Development amounted to P55.6 billion, slightly lower from P55.7 billion in the previous period. This was driven by the office for sale segment which grew more than two-fold to P9.8 billion and commercial and industrial lot sales which grew 11% to P4.3 billion but was offset by lower residential revenues. This was due to the full sell out and completion of blockbuster projects by AyalaLand Premier (ALP) and ALVEO which composed 51% of residential revenues during the period.

Residential. Revenues from the sale of residential lots and units and MCT Bhd’s operations reached a total of P41.5 billion, 13% lower than the previous period.

ALP posted revenues of P11.5 billion, 25% lower than P15.4 billion last year due to the full sell out of The Courtyards Phase 3 at Vermosa, Cavite, The Suites at BGC, Taguig, and Arbor Lanes Tower 2 at Arca South, Taguig.

ALVEO registered revenues of P9.7 billion, a decline of 29% from P13.7 billion attributed to the full sell out of Ardia at Vermosa, Cavite, Montala at Alviera, Pampanga, and Veranda Phase 1 and 2 at Arca South, Taguig.

Avida generated P13.4 billion in revenues, 27% higher than P10.6 billion last year due to new bookings from Avida Towers Intima in Manila and higher bookings and project completion of Avida Northdale Settings at Alviera, Pampanga.

Amaia posted revenues of P3.7 billion, a 19% increase from P3.10 billion as a result of higher bookings and project completion of Steps Nuvali Parkway and Steps Capitol Central in Bacolod. Meanwhile, BellaVita garnered revenues of P511 million, a 1% decrease from P516 million last year owing to the lower revenue contribution from Avesta project and lower bookings from its project in Cagayan de Oro.

MCT Bhd, ALI’s equity investment in Malaysia, generated P2.6 billion in revenues. This is 37% lower than the 1st half of 2018 due to the full sell out of its projects in CyberSouth in Klang Valley, Malaysia.

The average gross profit margin of horizontal residential projects registered at 43%, lower than 46% during the previous period, due to the sell out of high-margin projects by ALP and Alveo. Meanwhile, vertical projects improved to 38% from 36% due to higher margins from ALVEO’s Orean Place Tower 1 at Vertis North, Travertine at Portico in Ortigas, Avida’s The Montane in BGC, Sola Towers 1 and 2 in Vertis North, and Amaia Skies Cubao Tower 2.

Office for Sale. Revenues from the sale of office spaces supported residential revenues as it grew more than two-fold, amounting to P9.8 billion from the completion progress and new bookings from Alveo Financial Tower, High Street South, and Park Triangle Corporate Plazas.  The average gross profit margin of offices for sale improved to 44% from 35% due to higher selling prices of ALVEO Financial Tower in Makati CBD and Highstreet South and Park Triangle Corporate Plazas in BGC.

Commercial and Industrial Lots. Revenues from the sale of commercial and industrial lots grew 11%, contributing P4.3 billion from lots sales in Vermosa, Evo City and Alviera. Gross profit margins from Commercial and Industrial lots also increased significantly to 52% from 42% due to higher margins of commercial lots sold in in the said estates during the period.

Sales reservations remained steady at P72.3 billion mainly driven by local and overseas Filipino demand.


Commercial Leasing. This involves the operation of shopping centers, office buildings, hotels and resorts, and other leasing formats. Total revenues from commercial leasing jumped 16% to P18.6 billion.

Shopping Centers. Revenues grew 12% to 10.3 billion, supported by same mall revenue growth of 11% given the increased contribution of Ayala Malls Feliz, Circuit Makati and Capitol Central, supplementing the strong operations of Glorietta and Greenbelt in Makati, and Ayala Center Cebu. The EBITDA margin of shopping centers registered at 66%, 2 basis points higher than the previous period as a result of higher rent and occupancy of Ayala Center Cebu, Glorietta and Trinoma.

The average monthly mall lease rate registered at P1,063 per square meter while same mall rental growth is at 11%. The average occupancy rate for all malls is 88% while the occupancy rate for stable malls is 94%. Total Shopping Centers GLA stands at 1.91 million square meters as of the 1st half of 2019. This includes 8,000 sqm from the Ayala North Exchange retail area that was opened last March.

Offices. Revenues surged 25%, reaching P4.6 billion as newly-opened offices in Ayala North Exchange, Vertis North and Circuit Makati gained further traction. EBITDA margin of 91% was sustained from the previous period.

The average monthly office lease rate registered at P763 per square meter. The average occupancy rate of all offices is 93% while the average occupancy rate of stable offices is 96%. Total office leasing GLA is at 1.13 million square meters as of June 2019, adding 18 thousand square meters from Ayala North Exchange BPO which opened last April 2019.

Hotels and Resorts. Revenues from hotels and resorts moved up 17% to P3.7 billion on strong patronage of Seda Ayala Center Cebu, and Lio. Average revenue-per-available-room (REVPAR) of all hotels was lower by 2% to P3,511 per night and decreased by 3% to P9,018 for all resorts. Meanwhile REVPAR of stable hotels improved slightly to P4,198 per night but was lower by 3% to P11,672 for stable resorts.  Overall EBITDA margin increased to 33% from 31% due to the higher margins of Seda Ayala Center Cebu and Lio.

The average room rate of all hotels is P4,917 per night and P13,326 for all resorts. Meanwhile the average room rate of stable hotels is P5,372 per night and P17,789 for stable resorts. The average occupancy rate of all hotels registered at 71% and 68% for all resorts, 78% for stable hotels and 66% for stable resorts. The portfolio has a total of 3,264 rooms as of end June 2019 with the addition of 71 rooms at Seda BGC and 175 rooms at Circuit Makati Residences. The company also opened 105 rooms at Seda Residences Ayala North Exchange, 71 additional rooms at Seda BGC, and 50 rooms at Huni Lio in Palawan last July 2019.

Hotels and resorts operate 660 hotel rooms from its internationally branded segment, namely, Fairmont Hotel and Raffles Residences Makati (312) and Holiday Inn & Suites (348), both in Ayala Center, Makati CBD. Seda Hotels has 9 branches and operates 1,934 rooms: Atria, Iloilo (152), BGC, Taguig (250), Centrio, Cagayan de Oro (150), Abreeza, Davao (186), Nuvali, Santa Rosa Laguna (150), Vertis North, Quezon City (438), Capitol Central, Bacolod (154), Lio, Palawan (153), and Ayala Center Cebu (301). Meanwhile, El Nido Resorts operates 193 rooms from its four island resorts: Pangulasian, Lagen, Miniloc and Apulit, and Lio Tourism Estate operates 144 rooms under its Bed and Breakfast (B&B) and Dormitel offierings and and Sicogon Tourism Estate in Iloilo operates 78 B&Bs.


Services. This is composed mainly of the construction business represented by Makati Development Corporation (MDC), property management, represented by Ayala Property Management Corporation (APMC), and other companies engaged in power services such as Direct Power Services, Inc. (DPSI), Ecozone Power Management, Inc. (EPMI), and Philippine Integrated Energy Solutions, Inc. (PhilEnergy). Total revenues from the services business amounted to P4.4 billion, 7% higher than last year.

Construction. MDC totaled P1.5 billion, an increase of 28%, reflecting higher revenues from its external contracts.

Property Management. APMC and power services companies registered revenues of P2.8 billion, a slightly lower figure as some retail electricity supply contracts expired during the period.

The overall EBITDA margin of the service businesses advanced to 9% from 8% in the previous period.


Equity in Net Earnings of Investees, Interest, Fees, Investment and Other Income

Equity in net earnings of associates and JVs contributed P567 million, a 38% boost from the previous period, mainly as OCLP Holdings, Inc., the JV company on Ortigas, more than doubled its earnings to P254 million, reflecting the sustained momentum of its property sales and leasing operations. In addition, FBDC companies registered higher earnings amounting to P314 million, from its leasing assets in BGC.

Interest and investment income also increased, posting a 22% growth, which resulted in P3.8 million due to higher interest income from short-term investments.

Meanwhile, other income (composed mainly of marketing and management fees from joint ventures, among others) amounted to 294 million, reflecting a 72% decline from the higher base in the 1st half of 2018 wherein a one-time gain on the sale of MCT’s One City Properties was recognized. This offset the higher contribution of equity investments and interest income in the first half of 2019.



Expenses totaled P59.4 billion, a tepid increase from last year’s P58.8 billion as real estate expenses were successfully managed, maintaining it at P49.1 billion.

General and administrative expenses totaled P4.4 billion, a 3% increase from the 1st half of 2018 reflecting the controlled increase of overhead costs. This led to a maintained GAE ratio of 5.3% and improved EBIT margin to 35.3% from 33.2%.

Interest expense, financing and other charges registered at P6.0 billion, 14% higher, due to increased outstanding debt and interest expense.


Project and Capital Expenditures

Ayala Land spent a total of P49.5 billion in capital expenditures during the first half of 2019. 45% was spent on the completion of residential projects, 21% on the completion of commercial leasing projects, 9% for land acquisition, 17% for estate development and 8% for other investments


Financial Condition

The Company’s balance sheet continues to be solidly positioned to support its growth plans.

Cash and cash equivalents, including short-term investments and UITF investments classified as FVPL, stood at P24.8 billion resulting in a current ratio of 1.29:1.

Total borrowings registered at P199.1 billion which translated to a debt-to-equity ratio of 0.86:1 and a net debt-to-equity ratio of 0.75:1.

Return on Equity registered at 15.7% as of June 30, 2019.


Project and Capital Expenditures

End-June 2019End-December 2018
Current ratio 11.29:11.26:1
Debt-to-equity ratio 20.86:10.85:1
Net debt-to-equity ratio 30.75:10.72:1
Profitability Ratios:
 Return on assets 44.44%5.35%
 Return on equity 515.72%16.52%
Asset to Equity ratio 63.00:13.04:1
Interest Rate Coverage Ratio 75.075.67

1 Current assets / current liabilities
2 Total debt/ consolidated stockholders’ equity (Total debt includes short-term debt, long-term debt and current portion of long-term debt)
3 Net debt/ consolidated stockholders’ equity (Net debt is total debt less cash and cash equivalents, short term investments and financial assets through fvpl)
4 Annualized Total Net income / average total assets
5 Annualized Net income attributable to equity holders of ALI / average total stockholders’ equity attributable to equity holders of ALI
6 Total Assets /Total stockholders’ equity
7 EBITDA/Interest expense

There are no events that will trigger direct or contingent financial obligations that are material to the company, including any default or acceleration of an obligation.

There are no material off-balance sheet transactions, arrangements, obligations (including contingent obligations), and other relationships of the company with unconsolidated entities or other persons created in 2019.