Armed with a business plan to bag P40 billion in net income by 2020, Ayala Land, Inc. (ALI) has allocated P100 billion for its capital expenditure (capex) in 2015.
The figure stands as "the largest so far in Ayala Land's history," said Jaime Ysmael, ALI's senior vice president and chief finance officer.
A significant part of the capex came from ALI's top-up placement of 484.85 million shares sold at P33 each last Friday, January 9. Foreign investors bought 90 percent of the shares, while the rest were picked up by ALI's long-term shareholders.
The property giant earned P16 billion from the placement, a figure that president and CEO, Bernard Vincent Dy, referred to as a "landmark transaction."
"[I]t is the single largest capital-raising exercise in the 23 years that Ayala Land has been a listed company," stated Dy. "The funds generated will support our aggressive growth trajectory as declared in our 2020 Vision."
The company's "2020 Vision" involves raising its net profit by 20 percent every year until 2020. Currently, ALI seems to be well on track toward its goal. The company reported that its nine-month net income in 2014 was at P10.8 billion, a 25-percent increase from 2013.
The P100-billion capex, likewise, is "consistent with our investment program to attain our 2020 Vision," according to Ysmael.
Up to 43 percent of the P100 billion will be spent on development projects; 32 percent is allocated for land acquisition; 25 percent has been relegated to property investments, said Ysmael.
Source - The Manila Times