PROPERTY giant Ayala Land Inc (ALI) reported a 17 percent rise in net income in the first nine months of the year on strong real estate sales and revenue growth from its malls.
In a financial report to the Philippine Stock Exchange on Monday, ALI said net income in the nine months increased to P15.06 billion from P12.83 billion a year ago.
Consolidated revenues were up 14 percent at P85.49 billion boosted by real estate revenues, which jumped 15 percent to P80.50 billion from P70.2 billion last year.
Total revenues from property development grew 12 percent to P52.61 billion from P46.87 billion a year ago.
Sales from residential and office for sale projects reached P84.32 billion, 2 percent higher year-on-year, equivalent to an average monthly sales take-up of P9.36 billion, the company said.
ALI said it has launched P49.2 billion worth of residential and office for sale projects in the first nine months of this year. The company said it is also growing its leasing business to boost recurring income sources.
Revenues from its commercial leasing business grew 12 percent to P19.17 billion in the nine months on the simultaneous expansion of its malls, offices, and hotels and resorts portfolios. Its office leasing portfolio, for instance, posted a 10 percent rise in revenues to P4.01 billion from P3.63 billion last year.
“This was due to the higher average rental rates in existing office buildings and the positive contribution of new developments, such as Bonifacio Stopover and BGC Corporate Center in Taguig City,” ALI said.
The company currently has 753,000 square meters of gross leasable area (GLA) in its office portfolio.
ALI said revenue from shopping centers rose 15 percent to P10.59 billion from P9.24 billion a year ago on the enhanced performance of U.P. Town Center in Quezon City and Ayala Malls Solenad in Nuvali.
“The first three quarters of 2016 likewise saw ALI launching Ayala Malls Legazpi, its first shopping center in the Bicol region,” ALI said.
ALI’s shopping center portfolio currently has a GLA of 1.57 million square meters.
Its hotels and resorts business notched 6 percent growth in revenues to P4.57 billion due to the improved revenue-per-available-room (REVPAR) of existing hotels and resorts development.
“Total rooms registered at 1,991 across ALI’s international-branded hotels, Seda hotels, and El Nido Resorts,” it said.
ALI president and chief executive officer Bernard Vincent Dy said the company’s financial results “continue to be positive and reflective of a buoyant real estate industry. New products introduced in our various estates in 2016 have started to contribute to our performance and are expected to help sustain our growth moving forward.”
Capital expenditure in the first nine months hit P63.9 billion, of which 40 percent and 27 percent went to n completing residential and commercial leasing projects, respectively.
ALI earlier announced a planned capital expenditure of P85 billion in 2016.