Ayala Land Inc. Plans to Raise 75 Billion Pesos

Ayala Land Inc. $AYAAY, the largest real estate developer in the Philippines by sales volume, has announced plans to raise up to 75 billion pesos (approximately 1.3 billion USD) in the capital markets in 2025. This initiative aims to expand the company's market reach and support its growth in response to rising demand for residential properties.

Funding Sources

In an official statement released Thursday, Ayala Land noted that its board of directors approved the solicitation of funds through various debt capital instruments, including:

• Retail bonds;

• Corporate notes;

• Bilateral term loans.

The funds will be allocated to cover general corporate needs and partially refinance existing debt. The selection of these financing tools reflects the company's intent to diversify its funding sources and optimize its debt structure.

Financial Results and Forecasts

The Ayala Corp. $AYALY subsidiary announced a 15% increase in net income for 2024, reaching 28.2 billion pesos. The primary driver behind this growth has been improved sales performance in the housing sector, which has had a significant positive impact on financial results.

Earlier, the company also revealed ambitious plans to double its profits compared to the annual growth rate of the country's gross domestic product over the next five years. This strategic approach will contribute to further strengthening the company's position in the market.

Capital Expenditures

Ayala Land's capital expenditures in the previous year amounted to 84.6 billion pesos, with more than 50% of these funds directed toward residential projects. The remaining expenditures were distributed as follows:

• 27% for commercial real estate development;

• The rest for leasing, hotel assets, and land acquisitions.

Such a distribution of capital expenditures underscores the company’s strategic focus on residential construction, responding to heightened demand in this market segment.

Ayala Land Inc.'s plan to raise significant funds in the capital markets demonstrates the company's strong financial position and ambition for expansion. Given the growth in housing demand and increasing investment opportunities, Ayala Land shows confidence in its future, reinforcing its status as one of the leading players in the Philippine real estate market.