We will now start our meeting led by our Chairman, Mr. Jaime Augusto Zobel de Ayala.
Good morning. The meeting will please come to order. A warm welcome to all our stockholders, and welcome again to the 2024 Annual Stockholders' Meeting of Ayala Land. Complying with all the applicable rules, and after giving our stockholders the opportunity to call for a physical meeting in our notice dated March 13, 2024, we are again holding our meeting in a virtual format pursuant to our bylaws.
Joining us in this meeting are President and CEO, Anna Maria Margarita Dy; our CFO, Augusto D. Bengzon; our Corporate Secretary, Maria Franchette Acosta; and our directors, Cezar P. Consing, Mariana Zobel de Ayala, Mr. Rex Mendoza, Mr. Art Corpuz, Mr. Surendra M. Menon, Mr. Daniel Gabriel Montecillo, and Cesar V. Purisima. Our Investor Relations Head, Michael Anthony D. Garcia. Also joining us today are members of our management committee, other officers, and representatives of Isla Lipana & Co., our external auditor.
This meeting will have two parts. In the first part, our corporate secretary will inform us about our compliance with the requirements for this meeting, and if this meeting is duly convened, the voting results on the six matters on the agenda submitted for stockholders' approval. In the second part, our management will report to our stockholders on our 2023 performance and their forecast for 2024, including our targets and strategic direction. In the question-and-answer portion, our Head of Investor Relations will read the questions or comments from our stockholders received by email.
Before we proceed for the first part of the meeting, let me take this opportunity to thank our previous corporate secretary, Mr. Mon M. Hermosura, for his 28 years of dedicated service to the Ayala Group. Mon has transitioned to government service early this year and was succeeded by Mrs. Acosta, who will present the matters for approval in this meeting. Let us now proceed to the first part of this meeting. Mrs. Secretary, is this meeting duly convened?
Yes, Mr. Chairman. This meeting is duly convened because we have complied with the requirements under our bylaws and the applicable rules of the Securities and Exchange Commission. First, our stockholders have been duly notified of this meeting. On March 27, 2024, we distributed to our stockholders of record as of March 11, 2024, the notice of the annual stockholders meeting and definitive information by email, posting on our corporation's website, and disclosing to the Philippine Stock Exchange.
In addition, the notice was published in print and online on April 2, 2024, and April 3, 2024, in The Philippine Star and Philippine Daily Inquirer. Second, adequate information has been provided to our stockholders on matters submitted for their approval, the voting procedures, and other matters that our corporation is required to provide information on under the Securities Regulation Code and the Revised Corporation Code.
Third and finally, Mr. Chairman, there is a quorum for this meeting. Present in this meeting by proxy or remote communication or voting in absentia are stockholders owning at least 21,668,284,685 shares, representing 17.13% of the 27,384,670,744 total outstanding shares. The breakdown of the stockholders present in terms of mode of attendance will be reflected in the minutes.
Thank you. Mrs. Acosta, kindly present the matters submitted by our shareholders for voting and the corresponding results, please.
Mr. Chairman, there are six matters in the agenda for voting by our shareholders. Before I present the voting results, please allow me to mention that a resolution was proposed for each matter, and the shareholders voted on the proposed resolutions either by the chairman as a proxy pursuant to the voting instructions of the stockholders or by electronic ballot via the Ayala Group Voting System.
Stockholders could cast their votes beginning March 27, 2024, and may continue to do so until the end of this meeting through electronic voting via the voting system. We have tabulated the votes cast as of April 24, 2024, after the end of the proxy validation and preliminary tabulation process. Those votes are from stockholders owning 21,664,620,123 voting shares, representing 99.98% of the total voting shares present and 79.11% of the total outstanding voting shares.
I will refer to the results of this preliminary tabulation when I report the voting results for each resolution. The results of the final tabulation with the full details of the affirmative and negative votes and abstentions will be reflected in the minutes of this meeting. Mr. Chairman, let me now present the voting results. The first matter for voting is the approval of the annual stockholders meeting minutes held on April 26, 2023. Resolution number S-01-2024, shown on the screen, has been proposed for adoption by the stockholders. Stockholders owning 21,656,510,246 shares, or 99.95% of the total voting shares present in this meeting, voted to approve the minutes and the resolution. Therefore, resolution number S-01-2024 has been approved. Our stockholders may continue to access the minutes through the link provided to them with the meeting materials or through ir.ayalaland.com.ph.
The second matter for voting is the approval of the consolidated audited financial statements of the corporation and its subsidiaries as of December 31, 2023. The financial statements are part of the definitive information statement and the annual report, which are accessible from the corporation's website. For this matter, resolution number S-02-2024 has been proposed for adoption by the stockholders. The resolution is now shown on the screen. Stockholders owning 21,633,608,346 shares, or 99.84% of the voting shares present in this meeting have voted to adopt resolution number S-02-2024 for the approval of the consolidated audited financial statements of the corporation and its subsidiaries. As such, the resolution has been approved.
The third matter for voting is the ratification of all the acts and resolutions adopted from April 26, 2023 until today by our board, executive committee, and other board committees exercising powers delegated by the board, as well as the acts of our officers performed in the general conduct of our business or in accordance with the resolutions of the board, the executive committee, and other board committees and our bylaws. These acts and resolutions of our board and its committees are reflected in the minutes of the meetings. They are flashed on the screen, including the matters covered by disclosures to the Securities and Exchange Commission and the Philippine Stock Exchange. For this matter, resolution number S-03-2024 has been proposed for adoption by the stockholders. The resolution is now shown on the screen.
Stockholders owning 21,642,316,246 shares, or 99.88% of the voting shares represented in this meeting have voted to adopt resolution number S-03-2024. Therefore, the resolution has been adopted. The fourth matter for voting is the merger of the corporation and at most 34 of its subsidiaries with the corporation as a surviving entity, as embodied in the plan of merger. Mr. Chairman, our CFO, Mr. Augusto D. Bengzon, will explain and expound on the merger for approval.
Thank you, Madam Corporate Secretary, and good morning to all our shareholders. Allow me to present the merger involving 34 wholly owned subsidiaries directly owned by Ayala Land, Inc. or through Ayala Land Estates, Inc. and AyalaLand Hotels and Resorts Corporation., with Ayala Land, Inc. as the surviving entity. Currently, the companies involved in the merger are holding companies, landowning entities, sales corporations, or non-operating entities. Consolidating these corporations into ALI will result in a simplified ownership structure that will yield operational synergies, promote efficient funds management, and simplify reporting to government agencies. We engaged FTI Consulting, Inc., an SEC and PSE accredited valuer, to conduct the valuation of these companies. FTI computed the net asset values of these entities and the resulting swap ratios and provided a third-party opinion on the transaction. FTI Consulting, Inc.
has opined that the total number of shares to be issued by ALI for each entity to be merged falls within their fair range. As such, the proposed transaction is deemed fair from a financial point of view. Based on the fairness opinion, there will be 993,540,544 common shares to be issued, broken down as follows: 877,231,005 shares to be issued to Ayala Land as treasury shares, 116,298,039 shares to AyalaLand Hotels and Resorts Corporation., and 11,500 shares to Ayala Land Estates, Inc. Once approved by the regulators, the 877,231,005 common shares to be issued to Ayala Land as treasury shares will be retired subject to further regulatory approval. This concludes my presentation on the merger of the 34 subsidiaries into the company. Thank you.
Thank you, Mr. Bengzon. Before I present the voting results, Mr. Chairman, please allow me to mention that resolution number S-04-2024 was proposed for the approval of the plan of merger, and the stockholders voted on the proposed resolution number S-04-2024, either by the chairman as a proxy pursuant to the voting instructions of stockholders or by electronic ballot via the voting system.
Mr. Chairman, I am pleased to report that stockholders owning 21,642,316,246 shares, representing 79.03% of the total outstanding shares, voted to approve the plan of merger of the corporation and at most 34 entities that are wholly owned directly by the corporation or through Ayala Land Estates, Inc., and AyalaLand Hotels and Resorts Corp., with the corporation as a surviving entity and the execution of all documents and performance of all acts, including the effective waiver and denial of preemptive rights of stockholders to implement the proposed merger and Resolution Number S-04-2024.
The fifth matter for voting is the election of directors. The Corporate Governance and Nomination Committee of the Board has determined that the following nine duly nominated stockholders, including the nominees for independent directors, are qualified to serve as directors of the corporation for the ensuing term. Jaime Augusto Zobel de Ayala, Fernando Zobel de Ayala, Cezar P. Consing, Anna Maria Margarita B. Dy, Mariana Beatriz Zobel de Ayala, Rex Maria A. Mendoza, Surendra M. Menon, Daniel Gabriel M. Montecillo, and Cesar V. Purisima. Messieurs. Mendoza, Menon, Montecillo, and Purisima have been nominated as independent directors.
All the nominees have given their consent to their respective nominations. For this matter, Resolution Number S-05-2024 has been proposed for adoption by the stockholders. The resolution is now shown on the screen. Each of the nine nominees for directors has garnered at least 20,697,948,526 votes, receiving enough votes for election to the board. Resolution Number S-05-2024 has been approved. The sixth and final matter for the voting by our stockholders is the election of Isla Lipana & Company., as our external auditor for 2024 for an audit fee of PHP 4,644,500, exclusive of value-added tax and 5% out-of-pocket expenses. The audit committee and the board endorsed this matter for stockholders' approval, and Resolution Number S-06-2024, shown on the screen, has been proposed for adoption by the stockholders.
Stockholders owning 21,639,103,246 shares, or 99.87% of the voting shares represented in this meeting voted in favor of Resolution Number S-06-2024 for the election of Isla Lipana & Company. as the corporation's external auditor and fixing its remuneration. Thereby, the resolution has been approved. Mr. Chairman, this concludes all the matters for stockholders' approval in today's meeting, and there are no other matters for consideration. Stockholders were notified that they may submit proposals for agenda items, but we have received none.
Thank you, Mrs. Secretary. Before proceeding, let me take this opportunity to welcome Fernando Zobel de Ayala back to the board. Let me also thank Mr. Art Corpuz for his support, his invaluable contribution, and his many services to Ayala Land. Art has been a member of the board for seven years and served as chairman of the Sustainability Committee for six years. He has brought considerable knowledge and experience to the board from his many years in Ayala Land. Finally, although I will mention it at some length in my message, I'd also like to thank our former president and CEO, Mr. Bobby Dy, for his many contributions to Ayala Land's growth. Thank you, Bobby. We may now proceed to part two of this meeting.
My prerecorded message will now be shown, followed by the prerecorded report of our President and Chief Executive Officer, Mrs. Anna Maria Margarita Dy, and the audiovisual presentation. Thank you very much. Dear shareholders, in 2023, Ayala Land proudly celebrated its 35th anniversary, reflecting on its transformative journey since its inception in 1988. Witnessing the company's evolution and its deepening impact on Filipino lives has been a privilege. From its humble beginnings with a single product line, Ayala Land has expanded its portfolio to encompass 52 estates with leading brands in the residential segment, 34 malls, 71 office buildings, and over 4,000 hotel and resort rooms, supported by the country's largest construction and property management companies. Throughout its 35-year history, Ayala Land has transformed to expand its business lines and delivered lasting value to more Filipinos.
Time and again, Ayala Land has shown its resilience throughout various crises, including the Asian financial crisis, the global financial crisis, and of course, the recent COVID-19 pandemic. In 2023, formidable challenges continued to persist in the global and local environments, but we remain steadfast in navigating a steady course towards stability and growth. The lingering geopolitical tensions in Europe exerted prolonged effects on supply chains, consequently influencing commodity prices and driving inflationary pressures. Furthermore, interest rates across nations remained elevated with no definitive timeline for easing, posing uncertainties for economic expansion. Given these, the International Monetary Fund revised its GDP growth projections downwards to 3% from the previous year's 3.5%, falling short of the historical average of 3.8%. On the domestic front, the Philippines encountered a period of high inflation in a rising interest rate environment throughout the year.
Inflation averaged 6%, peaking at 8.7% in February, prompting the Bangko Sentral ng Pilipinas to implement a 100-basis-point increase, bringing the benchmark interest rate to 6.5%. However, amidst these challenges, the country exhibited resilience, achieving a commendable GDP growth rate of 5.6%. While slightly below the government's target range of 6%-7%, this growth remained notably robust within the regional context. Notably, household consumption continued to be a key driver of economic activity, constituting over 70% of GDP and expanding by 5.6% compared to the previous year. Amidst this complex business landscape, Ayala Land delivered strong results in 2023, driven by resilient property demand and sustained consumer activity. Revenue surged to PHP 148.9 billion, marking an 18% year-on-year increase, while net income reached PHP 24.5 billion, reflecting a 32% year-on-year growth.
With the pandemic behind us, our capital expenditures rose to PHP 86.2 billion, surpassing our initial budget of PHP 85 billion, as we accelerated the development of our diverse projects. Beyond our reach and scale, I'm proud of the profound, lasting impact our estates have had on communities, serving as engines of economic growth while fostering safe and sustainable environments for families to flourish.
We plan and build with future generations in mind, ensuring a legacy that we hope endures. In 2023, we introduced four new estates across the country to continue on this trust. In April, our real estate logistics subsidiary, AyalaLand LHC, unveiled the Batangas Techno Park, spanning 55 hectares in Padre Garcia, Batangas. The industrial estate will evolve into a mixed-use development, featuring an ALogis warehouse, cold storage facilities, a transport terminal, a gas station, an agricultural wholesale market, and restaurants.
It'll host light, medium, and non-polluting industries. September saw the launch of Centrala, a 32-hectare development in Angeles City, Pampanga. It is the first estate development in the city and is envisioned as a dynamic business district in Central Luzon. Strategically located with access to major roads and the Clark International Airport, Centrala promises to be a hub of economic activity. Also in September, we introduced Southmont in partnership with Cathay Land. Southmont is a 789-hectare mixed-use master plan development in Silang, Cavite. Currently, Southmont aims to elevate living standards and community engagement through Alveo's Hillside Ridge and Verdea, as well as Ayala Land Premier's Lanewood Hills. December marked the launch of Arillo, Ayala Land's pioneering mountainside leisure estate in Nasugbu, Batangas.
The 62-hectare estate is positioned to be the premier eco-tourism and nature hub, featuring premium overnight facilities, a nature sanctuary, canyon trails, an events venue, a restaurant district, and a town center amidst the scenic Batulao landscape. At Ayala Land, we're guided by the belief that well-conceived real estate development can truly transform lives. This commitment to our stakeholders' evolving needs has been the cornerstone of our strategy and execution. With this, we have been steadfast in our pursuit of environmental sustainability. We've aligned with our medium-term goal to reduce and eliminate our controllable emissions by 2030, in harmony with Ayala Group's net zero greenhouse gases by 2050 aspiration. By the close of 2023, we've reduced or offset 86% of our Scope 1 and 2 emissions, a milestone independently verified by a third-party assessor.
This was accomplished by sourcing renewable energy with 111 commercial properties comprising 90% of our portfolio now powered by clean energy. Furthermore, we have intensified our efforts to promote a circular economy. In 2023 alone, we repurposed 359 tons of plastic into construction materials, board ups, and pallets for cold storage. Additionally, we diverted 286 tons from landfills, representing 100% of the yard waste generated from five estates. These were used to power a laundry service that caters to Seda Nuvali and other hotels in the Cavite, Laguna area. As we stand at the threshold of a new era, marked by increasing demand for more sustainable, innovative, and resilient spaces for people to live, work, and play, Ayala Land is poised to seize the opportunities presented by this evolving landscape.
With our proven capabilities, agility, and track record, I'm confident that we will not only navigate this new operating environment, but also play a significant role in driving the continued progress of the country. Recognizing the evolving business landscape, we have refreshed board compositions across the Ayala Group, enhancing our incumbent expertise as we chart our new growth strategies. Amidst frequent industry disruptions, making our operations more agile is paramount in future-proofing our business.
Cesar P. Consing, President and CEO of Ayala Corporation, now serves as ALI's Vice-Chairman, alongside Daniel Gabriel Montecillo as Lead Independent Director, and Surendra M. Menon as Independent Director. Their fresh perspectives and insights have already contributed immensely to the board in the direction of the company. Speaking of the board, I'd also like to thank Art G. Corpuz for his service to the Ayala Land board, stretching all the way back to 2016.
Art has been a long key member of ALI's management team, leading vital teams in our design and urban planning teams from 2008 to 2016. He remains as a leading thought leader in the country on architecture and urban planning. We at Ayala Land are thankful for his guidance and insights that I believe will continue to usher the company towards our mission of building spaces that people enjoy.
On behalf of the board, thank you, Art. At the management level, we welcome Anna Maria Margarita ''Mian'' Bautista Dy as Ayala Land's new President and CEO, succeeding Bobby Dy, who spearheaded the company since 2014. I'd like to warmly welcome Mian, who's been a vital pillar in ALI for many years. Her success with our Estates group, and more recently with the Residential and Malls Group, has been crucial in maintaining Ayala Land's strong brand.
We look forward to working with Mian on this next chapter for Ayala Land. On behalf of the board, I'd also like to thank Bobby for his visionary leadership, culminating in milestones such as crafting and executing the 2020-2040 strategic plan, expanding our estates from 26 to 52, doubling our asset base to over PHP 800 billion, and close to tripling net income to PHP 33.2 billion in 2019, which resulted in our share price appreciating by 84% and outperforming the benchmark stock market index growth of 33%. Under Bobby's watch, Ayala Land developed AREIT, ALogis, and AirSWIFT. It was also during his time that Makati Development Corporation became the largest construction company in the country. Bobby was at the forefront of our sustainability initiatives as he implemented a five-year plan to achieve carbon neutrality across all our commercial properties.
More importantly, Bobby navigated and pivoted the company at the height of COVID-19 health crisis to refocus on ensuring the well-being of our communities, our merchants, our suppliers, and of course, our employees. Under his guidance, the company maintained a strong balance sheet that ensured that the company remained resilient and recovered from the challenges of the pandemic. The rest of the board and I are very thankful for his years of service to the company and wish him all the best in this next chapter of his career. Thank you, Bobby. Ayala Land continues to be such a vital part of the entire Ayala Group, acting as our largest growth engine, as well as being among our most visible companies with such a direct and profound impact in the lives of Filipinos.
The landscape and the economy of the Philippines would not have been the same if it were not for Ayala Land's contributions. This remains our greatest pride, as well as our most meaningful responsibility. We're excited at what the future holds for Ayala Land, carrying forward its 35 years of expertise in sustainable community and estate development. To our shareholders and stakeholders, we're humbled and grateful for your trust and confidence over the past 35 years. As we look to the future, we will continue to build with purpose, with quality as our priority to move forward with a stronger brand that we intend to make last generations.
Dear shareholders, 2023 marked the Philippines' first complete year of uninterrupted economic activity since the onset of the pandemic. The country embarked on a path of recovery and achieved a commendable 5.6% GDP growth rate, which surpassed the performance of our regional counterparts such as China, Indonesia, Malaysia, and Vietnam. Propelled by the country's robust economy, all our major business lines exhibited exceptional results.
Consolidated revenues recorded an increase of 18% to PHP 148.9 billion, and we achieved a net income of PHP 24.5 billion, a 32% growth compared to the previous year. Given the breadth and depth of our reach across Filipino consumers, allow me to highlight the bright spots that we saw in our business lines. For our residential business, we achieved gross reservation sales of PHP 113.9 billion, higher by 9% year-on-year, which translated to residential revenues accelerating by 22% to PHP 77.2 billion.
We continued to see market demand from the premium residential segment, and we launched projects valued at PHP 75.9 billion, of which 88% came from Ayala Land Premier and Alveo brands. While we leaned on the premium segment, we also completed plans and prepared projects for launch in the core residential brands of Avida and Amaia to ensure that we are ready when the middle-income market rebounds.
Our strong and diverse portfolio of brands allows us to capitalize on shifting market opportunities. Mall revenue surged by 31% to PHP 21.1 billion as occupancy levels and tenant sales improved during the year. We opened Ayala Malls One Ayala at Makati CBD and the initial phase of Ayala Malls Vermosa, adding another 49,000 sq m of retail space to our portfolio. We continue to believe in the country's rising affluent demographic and will remain focused on enhancing the mall experience.
Office leasing revenues grew 6% to PHP 11.8 billion. While industry vacancy rates remained high at 20%, we benefited from the market's flight to quality with an average occupancy of 92%, or a vacancy rate of just 8%. Our office leasing business and tenant base have remained resilient despite work from home and hybrid work policies that we expect to continue. We are cognizant of the exponential developments in AI and its potential impact on the BPO industry, both from an office portfolio and country standpoint. These uncertainties and the changing landscape reaffirm our conviction to focus our office portfolio in winner locations and ensure that our product remains conducive to fostering a collaborative and productive work environment for our tenants. Hotel and resorts revenues also witnessed a remarkable 42% growth, reaching PHP 8.8 billion.
The opening of Seda Manila Bay in Parañaque City and the second tower of Seda Nuvali, totaling 420 new rooms, increased our hospitality portfolio to 4,456 keys. We are proud of the recognition received by Seda Hotels from the World Travel Awards as the Philippines' leading hotel group. AREIT is the largest and most successful REIT in the Philippines. Its asset under management will reach PHP 117 billion in 2024 as we infused flagship mall, hotel, office, and industrial land assets amounting to PHP 29.8 billion. Our commitment to growing AREIT has resulted in a total shareholder return of 53% in the four years since its IPO. We view AREIT as a strategic vehicle that delivers value to its shareholders while enabling Ayala Land to reinvest capital into its various growth platforms.
Makati Development Corporation, or MDC, has significantly benefited from Ayala Land's breadth and scale and is now the largest construction company in the Philippines. Our goal is to provide the most cost-competitive and highest-quality construction services. We constantly look at industry best practices and leading technologies to bring new ideas and capabilities to sustain our competitiveness. MDC partnered with two of the world's largest and most respected construction companies, the Bouygues Group from France and the Takenaka Corporation from Japan.
These engagements will give MDC the advantage in accessing pioneering construction design, methodologies, and disciplines. It is amidst this backdrop that I stepped into the role of CEO in October 2023 and trusted with steering Ayala Land into its next phase of growth and evolution. With all our businesses on solid footing, we are again ready to be bold in our dreams and ambitions.
We did not need to look far to determine what these bold dreams could be. We simply needed to look at what Ayala Land is at its core, the gold standard in property development in the Philippines. With this as a starting point, we set new strategies prioritizing quality and elevating the customer experience. We are embarking on a transformative journey to redefine industry norms and raise the bar for quality and customer experience across our business lines. To set new standards and to create unparalleled environments that inspire, delight, and resonate with our valued customers, we are reinvesting in our malls, hotels, resorts, and offices. We have earmarked PHP 13 billion to revitalize our flagship malls, Glorietta, Greenbelt, Trinoma, and Ayala Center Cebu, and unlock their full potential, starting with Greenbelt's transformation into a premier luxury destination.
This reinvention aims to deliver a new customer experience level from the physical environment and sense of space to the merchant mix, offering fresh and exciting new brands. Our resorts and hotels are also undergoing a comprehensive reinvention program. Supported by an initial budget of PHP 5.5 billion for the renovation of four hotels and two resorts, we aim to showcase the best of Filipino hospitality.
Likewise, we are completing the Mandarin Hotel, set to open its doors in 2026. Designed to offer the highest standards in luxury hospitality, it will infuse a new level of sophistication and dynamism into the Makati CBD. We are also raising the bar in luxury residential living. We introduce Park Villas, targeted to be ALI's first LEED Gold-certified residential building. This bold new project overlooks the Ayala Triangle Gardens at the heart of Makati and is Ayala Land Premier's inaugural signature development.
A first in the Philippines, Park Villas offers 45 single-unit floors, each averaging 610 sq m. Working with multi-awarded global design consultants Skidmore, Owings & Merrill for architecture and Yabu Pushelberg for interior design, the project promises to bring new design sensibilities to the market. To deliver enhanced customer service, improve process efficiencies, and tap new markets, we are upgrading our technology and introducing new digital platforms.
We started with a major upgrade of our customer relationship management system and held the pilot run of our latest sales platform, Reserve Now, in a customer portal, Access ALI. With their formal launch in 2024, we aim to provide increased accessibility and convenience for our customers. ALI's Land Bank is a strategic asset supporting our growth aspirations. It comprises carefully selected parcels based on their accessible locations to anticipated transportation and infrastructure projects, most of which are coming to fruition.
With this, we are able to develop estates where all our business lines can come together in synergy, a proven formula for long-term value creation. Today, we are focused on utilizing this land bank to deliver our pipeline of horizontal projects. We launched PHP 38.4 billion of residential, commercial, and industrial lot products for sale. These projects account for 42% of total launches, amounting to PHP 91 billion, of which 73% were located within our estates.
In 2023, we introduced four new estates to the market, the 55-hectare Batangas Techno Park at Padre Garcia, the 32-hectare Centrala at Angeles City, Pampanga, the 789-hectare Southmont at Silang, Cavite, and the 62-hectare Arillo at Nasugbu, Batangas. We will continue with the strategic utilization of our land bank and anticipate an average annual usage of 800 hectares to support our various development plans over the next five years.
Our aspirations can only turn into reality with a capable and motivated organization. As such, we continue to invest in our most important asset, our people. We welcomed new talent into the organization to bring specialized expertise in key areas such as strategy and transformation, human resource development, customer insighting and brand development, and mall and hospitality operations.
We reorganized for greater focus, built capabilities to deepen our understanding of the changing customer needs, and measured ourselves against third-party customer feedback. Aligning with Ayala Group's overarching net zero aspiration, we took a close look at the task at hand. While we have made great strides in addressing our Scope 1 and Scope 2 greenhouse gas emissions, much still needs to be done for Scope 3. Achieving this goal will require an industry-wide shift, and we continue to work with our partners to experiment with new technologies and build new capabilities.
As an application of circular economy principles, we partnered with SteelAsia Manufacturing Corporation to supply MDC with rebars recycled from metal scraps generated by our own construction projects. This agreement is the first of its kind in the country. MDC is also the largest producer of low-carbon concrete in the country, effectively reducing carbon emissions by 24% in 2023 through the use of alternative materials.
This was used in the concrete works and foundation of the new BPI headquarters currently under construction in Makati. We also formalized a memorandum of understanding with the International Finance Corporation to accelerate the transition to net zero by 2050. Under this MOU, we commit to achieving EDGE Zero Carbon certification across 100% of our 1.5 million sq m of office space by 2025. As we embark on the next chapter of Ayala Land, we are emboldened to dream again.
We aspire to bring world-class experiences to the Filipinos and keep doing what we do best. We build places that people love. Through the places we build, we not only transform landscapes, but we also transform lifestyles and lives. To our customers who continue to challenge and inspire us to always do better, I thank you for your trust and confidence. I thank my predecessor, Bobby Dy, for his exceptional stewardship of Ayala Land since 2014. Not only did Ayala Land reach new heights under Bobby's leadership, but he also served as our bastion of stability during the darkest days of the pandemic. I thank the women and men of Ayala Land for the openness and warm welcome. Join me as we take ALI to its next level. I thank the board of directors for their wisdom and guidance as we boldly map out Ayala Land's future.
To our shareholders, thank you for supporting Ayala Land for the past 35 years. With our strategic initiatives to reinvent our products, set new standards for quality, elevate the customer experience, enable our people, and drive sustainability, we look forward to continuing to deliver on ALI's track record of growth. At this point, may I invite you to watch our corporate video celebrating our 35th anniversary.
[Presentation]
Thank you very much. Mian, congratulations on your first year to you and the management team for the great results. We will now address the questions and comments from our stockholders. Our investor relations head, Mr. Mike Garcia, will now read the questions and comments with the names of the stockholders who sent them. Mr. Garcia.
Thank you, Mr. Chairman. Allow me to start by addressing several questions from Mr. Anthony Gilbert Antiquera regarding our malls and key plans in Imus, Las Piñas, and General Trias in Cavite. He has five questions. First, did you plan for the redevelopment of The District Imus and Dasmariñas? Second, when is the grand opening of Ayala Malls Vermosa and the soft opening of Ayala Malls EvoCity? Third, will there be a Landmark department store and supermarket in Ayala Malls Vermosa and EvoCity? Fourth, when is the target opening of Landers Vermosa? Lastly, is Ayala Land building a future township in General Trias, Cavite?
Thank you, Mike. If I could request our President and CEO, Mrs. Mian Dy, to respond to Mr. Antiquera's questions.
Thank you, Mr. Chairman, and thank you, Mr. Antiquera, for your questions. Regarding your first question, The District Imus and Dasma have high overall lease-out rates of 91% and 76%, respectively. We continue to look for opportunities on how we can optimize the merchant mix to drive greater foot traffic into these malls. Regarding your second question on the grand opening of Ayala Malls Vermosa and the soft opening of Ayala Malls EvoCity.
For Ayala Malls Vermosa, we are looking at its grand opening, with 38,000 sq m, in the second half of this year. Meanwhile, Ayala Malls EvoCity will have a soft opening in the fourth quarter with 8,000 sq m. To your question, we have Landers in Vermosa and S&R in EvoCity to currently serve our consumer needs. Fourth, we are looking to open the Landers Superstore at Vermosa in the third quarter of the year. Lastly, we have an Amaia and BellaVita communities to serve the demographic market requirements of General Trias.
Thank you, Mian. Mike, do we have other questions from our stockholders?
Yes, Mr. Chairman. The second set of questions came from Ms. Asila Larizabal. Regarding your merger, what are the regulatory requirements, and when are you expecting to complete the transaction?
Thank you. If I could ask our CFO, Mr. Toti Bengzon, to address this question. Toti?
Thank you, Mr. Chairman, and thank you, Ms. Larizabal, for your question. The rationale of this merger is to simplify the ownership structure for operational synergies, efficient funds management, and simplified reporting to government agencies. The transaction will require the approval of the Securities and Exchange Commission. Upon approval, we need to secure the clearance of the Bureau of Internal Revenue to transfer the properties to Ayala Land as the surviving entity. Afterwards, we will list the shares with the Philippine Stock Exchange. We are looking at a timeline of six months for the SEC approval, another six months for the BIR clearances, and six months for the PSE approval. We are looking to complete the transaction on or before the first half of 2026.
Thank you, Toti. Other questions from our stockholders?
Yes, Mr. Chairman. The next question came from Mr. James Erwin Villarin. We noticed that Ayala Land's share price recovered strongly last year up until February this year. However, it started to decline significantly in March. What is happening to the share price?
Thank you, Mike. If I could maybe ask again our CEO, our CFO to address this question.
Thank you, Mr. Chairman, and thank you, Mr. Villarin, for the question. We constantly monitor the company's share price, review market events, and engage with analysts and shareholders to identify the drivers affecting its performance. We can attribute the recent share price decline to continuing high inflation in the U.S. and the consequent pronouncements from the U.S. Fed Chair Powell that they will delay interest rate cuts.
This has dampened investor interest in equities, particularly those in the real estate industries. At these levels, we believe that ALI shares are trading well below its fair value. Hence, we have actively been repurchasing our shares, and to date, we have acquired PHP 2.4 billion worth of ALI shares, and we will continue implementing our buyback program as long as we see our shares trading at a steep discount to its intrinsic value. Moreover, we note that 14 brokerage houses ascribed a buy rating on ALI, with a target price raising from PHP 35 to PHP 46. This shows that they recognize ALI's strong growth prospects.
Thank you, Mian. Do we have other questions from our stockholders?
Yes, Mr. Chairman. The next question comes from Ms. Elma Guinto. She is asking, what is your outlook for 2024, and how is the company adjusting to changes in the business landscape?
If I could again request Mian to respond to this question.
Thank you, Mr. Chairman. We are optimistic about 2024. We have a PHP 100 billion budget for project launches and PHP 100 billion in CapEx planned for this year. In 2023, our performance was good, with an 18% growth in revenues and a 32% growth in NIAP. We expect this growth to continue, and our planning parameters do not include any boost from lower interest rates. We are seeing a number of changes in the business landscape and let me just focus on three. First, the current higher interest rates have affected demand in the mid-market or core residential markets, our Avida and Amaia brands. The sentiment there is improving, and we expect a boost when interest rates improve. We have to be agile to take advantage of changing market opportunities.
While 80% of our planned launches in 2024 are in the premium brands, we have projects in our core residential brands that are on push button mode. The land is ready, the plans are ready, the permits are ready, and when the market starts to move, we can push the button and launch. Second, we can see what has happened in the world markets for commercial office space. That has not happened to us.
Our office occupancy rate is very healthy at 92%, and much better than the rest of the local market. It's a flight to quality, and we continue to see demand for office space. We are cautiously growing our portfolio with a focus on winner sites and verifiable long-term demand. Third, one of the lessons of the pandemic is the rise of online shopping. It's now ingrained in how the Filipino will transact and consume.
We believe that it will not replace the need for a physical shopping experience. However, moving forward, we need to give the Filipino consumer an improved and heightened customer experience, a reason to want to go back to brick-and-mortar shopping. This is why we have embarked on a PHP 13 billion reinvention plan for our flagship malls. In 2023, our mall business grew by 31% in revenues. This year, Ayala Land embarked on a new growth strategy focused on building places that people love. The goal is to elevate the standard of quality, reinforce the company's position as a market leader, and enhance the customer experience across its product and service offerings. Our strategy is anchored on four pillars: setting new standards for quality, sustainable long-term growth, empowering our people, and delivering on our sustainability agenda.
Thank you, Mian. Mike, are there other questions?
Yes, Mr. Chairman, from Ms. Flordelis Cruz. "I have been reading news on your sustainability initiatives to reduce carbon emissions. Can you share more information about it?
Thank you, Mike. Again, Mian, if you don't mind responding to the question.
Sure. Thank you, Mr. Chairman. Our business is really all about sustainability. We exist to build places for our children, the next generation. That's sustainability. Ayala Land's commitment is to achieve net zero by 2050. Scope 1 and Scope 2 are for controllable emissions from fuel, refrigerants, electricity use. For Scope 1 and Scope 2, we have made great strides. We made our targets ahead of schedule.
90% of our commercial properties, our malls, hotels, resorts, are all powered by clean energy. We are getting this certified so that we know it's real. We are working with the IFC, or the International Finance Corporation, for the EDGE Zero Carbon certification. As of January this year, we have received certification for eight office buildings comprising 354,000 sq m, making Ayala Land offices the largest EDGE Zero Carbon certified portfolio in the Philippines.
The challenge we now face is Scope 3. That covers all other emissions from our value chain, including suppliers, tenants, customers. We have two major initiatives to address our two largest raw material requirements, steel and cement. We are now working with Green Cement. MDC is the largest producer of low-carbon concrete in the country, with 563,000 cu m of concrete. It is 24% cleaner than conventional concrete, and we are now using this for our projects, including the new BPI headquarters in Makati.
We are also working with SteelAsia to recycle our steel waste products. We are turning our waste back to raw materials, and the technology used by SteelAsia results in lower emissions, and they are also committed to sourcing renewable energy. Furthermore, we have a research and development team in MDC that is actively looking for new technologies and techniques that we can adopt here in the Philippines. We are taking the lead in bringing sustainable construction in the country, and this is the way for us to achieve our commitment to net zero.
Thank you, Mian. Mike, do we have other questions from our stockholders?
There are no more questions, Mr. Chairman. Allow me to thank our stockholders who participated in our Q&A. The link to the audio and video recording of this meeting will be posted on our website, and stockholders may raise any issue, clarification, or concern about this meeting within two weeks of the posting of the link by sending an email to corporatesecretary@ayalaland.com.ph.
Well, that concludes this morning's proceedings. I wanted to also take this opportunity to thank all the stockholders for attending our virtual meeting. Thank you for continuing to believe in us and from continuing this journey forward with us. The meeting is hereby adjourned. Thank you to all for joining us here today. Thank you