Ayala Land Inc. confirmed a media report stating that the property giant is allocating 110.8 billion Philippine pesos for its 2018 capital expenditures, but clarified how it intends to fund the initiative.
The company said in a Feb. 19 disclosure that the planned 2018 CapEx will be funded in part with 15 billion to 20 billion pesos that it seeks to raise via the debt capital market. The remaining funds that will be raised will go toward the refinancing of existing debt.
Ayala Land also confirmed that the bulk of the full-year CapEx budget, amounting to 47.4 billion pesos, is being earmarked for residential projects, while 18.7 billion pesos and 14 billion pesos are being allocated for mall developments and land acquisitions, respectively. Estate, office building, and hotel and resort developments will account for the remaining portion of the budget.
The company also acknowledged that it intends to launch 125 billion pesos of projects in 2018 and that it needs to see a 17% annual growth rate in order to reach its 2020 net income target of 40 billion pesos.
As of Feb. 19, US$1 was equivalent to 52.34 Philippine pesos.