PROPERTY giant Ayala Land Inc. reported a 16 percent increase in net income for the first half of the year led by strong revenues from its estate projects.
In a disclosure to the Philippine Stock Exchange, Ayala Land said it posted a net income of P9.74 billion in the first six months of 2016 compared to the P8.39 billion booked in the same period of 2015.
“Ayala Land continues to capitalize on the growth in the real estate sector. Our established estates drove our performance, alongside increasing contributions from similar mixed-use developments that we’ve launched over the last five years,” ALI president and chief executive officer Bernard Vincent Dy said.
Consolidated revenues in the first half grew 8 percent to P54.76 billion from last year’s P50.61 billion.
Revenues from its core business segments particularly property development, commercial leasing, and services steadily grew in the first half of the year by 8 percent to P51.45 billion.
“This was propelled by the coordinated expansion of its large mixed-use estates in key growth areas nationwide,” ALI said.
The company’s property development segment posted a 6.0 percent increase in revenues in the first half of the year to P33.66 billion from the P31.85 billion posted in the previous year.
On the other hand, its commercial leasing segment posted a 12 percent rise in revenues to P12.76 billion, from P11.40 billion posted in the previous year.
On the sidelines of a media briefing on Tuesday, ALI chief finance officer Jaime Ysmael told reporters that the company is confident of sustaining its financial growth in the second half of the year.
“Yes, we are reasonably confident that the trend will continue in the second half of the year,” Ysmael said. “We expect the momentum to be carried over to the second half. It appears the projects are doing well, the recent launches will manifest themselves into additional bookings and so far the leasing projects are doing well.”
Meanwhile, Dy noted that development of ALI’s estates is in full swing.
“We are also focusing on sustainability and making sure we have estates that serve not only today’s market but the next generation of consumers as well,” Dy said.
Estates currently in development include Circuit Makati, Arca South in Taguig, Vertis North and Cloverleaf in Quezon City, Vermosa in Cavite, Altaraza in Bulacan, Alviera in Pampanga, Atria Park District in Iloilo City and Capitol Central in Bacolod City, among others.
In the first half the year, ALI launched one new estate—the 17.5-hectare Gatewalk Central in Mandaue City which features residential, office and retail components.
“Within the newly launched Gatewalk Central, ALI will also build a mall with an estimated gross leasable area of 115,000 square meters and a BPO office with an estimated gross leasable area of 20,000 square meters,” ALI said.
ALI said it aims to grow its hotel and resorts portfolio with the expansion of its Seda hotel brand and El Nido Resorts. Eleven hotel projects are currently being built across the country.
The company said it spent P43.35 billion for project and capital expenditures in the first half of the year.
“Ayala Land’s solid balance sheet position in the first six months of 2016 provides adequate capacity to support its growth plans for 2016 projects and beyond,” the company said.