rthaland's annual shareholders meeting on June 28, 2024, was a testament to the company's unwavering commitment to sustainable growth and excellence. Reflecting on a stellar 2023 and the first half of 2024, Arthaland's leadership highlighted its strategic accomplishments, financial health, and future aspirations, showcasing a robust blueprint for continued success.
Achieving critical mass and diversifying revenue streams
In 2023, Arthaland achieved critical mass in terms of revenue growth, amassing record-high consolidated revenues of Php 6.6 billion. This achievement marked a significant milestone, surpassing the peso equivalent of US$100 million—a benchmark recognized by institutional investors. The company's deliberate approach to real estate development and substantial brand equity facilitated a three-fold increase in reservation sales, reaching Php 27.8 billion in 2023, despite pandemic challenges.
Arthaland's successful entry into the broader mid-market segment was a key driver of this growth. "Our strategic decision to enter the broader mid-market segment is aligned with our vision of bringing the concept of “wealth of life” to the greater community. We believe that access to world-class, sustainable products should be for everyone and not limited to the luxury and upscale market segments," says Vice Chairman and President, Jaime González.
The launch of Una Apartments within the Sevina Park estate generated over Php 4.2 billion in reservation sales by May 2024. The rapid sell-out of the first tower and the 60% pre-sale of the second tower underscored the high demand for sustainable, top-quality products tailored to mid-market needs.
"In executing our plans to enter the mid-market segment, we maintain our leading presence in the luxury and upscale segments and design our product offerings with the same quality and sustainability standards for which Arthaland is known," González added.
Expanding the development portfolio
Arthaland's commitment to expanding its development portfolio has been instrumental in its growth trajectory. By 2024, the company aims to increase its portfolio nearly five times, from a combined gross floor area (GFA) of over 100,000 sqm in 2019 to 456,000 sqm. This impressive portfolio includes flagship projects like Arya Residences and Arthaland Century Pacific Tower (ACPT) and new ventures in high-growth areas like Metro Cebu and Metro Laguna.
Significant project milestones were achieved in the past year, including the launch of the second tower of Una Apartments, the handover of Sevina Park Villas, and the topping-off ceremony for Lucima, Arthaland's premier sustainable residential project in Cebu Business Park. These projects exemplify Arthaland's dedication to delivering best-in-class, sustainable developments.
Strengthening the culture of excellence
Arthaland's culture of excellence has garnered multiple accolades, including being recognized as an EDGE Champion by the International Finance Corporation (IFC) and winning the Green Project Deal of the Year award under the Best Deals ASEAN category. These honors reflect Arthaland's leadership in sustainability and its commitment to green building practices.
The company's credit rating of PRS Aa with a Stable Outlook, assigned by the Philippine Rating Services Corp., underscores Arthaland's strong financial position and ability to meet its financial commitments. This rating highlights the company's reputable standing in developing premium, green-certified buildings and its strategic growth in competitive market segments.
Leading in sustainability
Arthaland remains at the forefront of sustainable development in the Philippines, with a portfolio 100% certified as sustainable by local and global organizations. As Asia's first real estate developer to sign the Net Zero Carbon Buildings Commitment of the World Green Building Council, Arthaland has pledged to decarbonize its portfolio by 2030, positioning itself and the Philippines as leaders in global climate action.
"2030 is almost tomorrow. Decarbonization is not an easy goal. However, through hard work, we have already achieved a lot toward this goal and are determined to make this happen," González expressed.
Arthaland's operational projects achieved remarkable sustainability metrics in 2023, including 59% energy savings, 54% water savings, and an 80% reduction in greenhouse gas emissions. The company's developments, such as Cebu Exchange and Savya Financial Center, have received prestigious certifications like EDGE Advanced and the WELL Health-Safety Rating, reinforcing their status as sustainable and health-conscious buildings.
Celebrating culture and community
Promoting sustainable development includes appreciating cultural diversity and culture's contribution to it, consistent with the UN's Sustainable Development Goals (SDG). Following the successful art exhibition in ACPT, Arthaland collaborated with the Cultural Center of the Philippines to host another enlightening exhibition in Cebu, "Udtong Tutok: Art at High Noon—Affinities, Continuities and Contradictions in Philippine Art."
The developer also unveiled a more extensive Healthy Hauls program in partnership with Rural Rising, which will impact 1,900 families this year—a sevenfold increase from 2022. Additionally, Arthaland conducted the first batch of the Professional Green Building Training Program with the National University College of Architecture, offering a six-week program for aspiring green building professionals.
Lastly, Arthaland's Vice Chairman and President, Mr. Jaime C. González, delivered the opening remarks at the 2nd Philippine Climate Forum, themed "Buildings Breakthrough Day: Raising Ambitions Toward Near-Zero Emissions and Resilient Buildings by 2030." This event, spearheaded by the International Finance Corporation (IFC), reinforces our commitment to a sustainable future. Beyond building green, we pledge to decarbonize our development portfolio by 2030, extending this promise to current and past projects.
Path to continued success
Arthaland's vision for sustainable growth remains steadfast as it sets benchmarks in revenue generation, portfolio expansion, and cultural initiatives. The company's achievements in 2023 and early 2024 highlight its strategic acumen, with impressive milestones in project developments and significant contributions to sustainable practices. As Arthaland progresses, its unwavering focus on sustainability and excellence promises a future of continued success and leadership in the real estate sector.
To learn more about Arthaland, visit www.arthaland.com
