AYALA Land Inc. posted a 19-percent rise in net income for 2015 to P17.6 billion from P14.8 billion in 2014, on the back of the strong performance of its mixed-use estate developments.
“Our established and emerging estates provided the backbone for our sustained growth, while we continue to introduce new estates that will further contribute to it in the coming years,” ALI President Bernard Dy said in a statement.
A diverse offering of residential and commercial products is on the rise in ALI’s master-planned estates all over the Philippines, and has amplified its presence in key growth centers of the country.
The company introduced three new integrated mixed-use estates in 2015. These are the 11-hectare Cloverleaf in Quezon City, the nine-hectare Capitol Central in Bacolod, and the 700-hectare Vermosa in Cavite.
ALI particularly attributed its higher earnings to the sustained performance of its property development and leasing businesses, and improved margins across its product lines.
The firm’s consolidated revenues rose 13 percent to P107.2 billion from P95.2 billion a year ago.
Revenues from property development, which includes the sale of residential lots and units, office spaces, and commercial and industrial lots increased by 10 percent to P67.9 billion from P61.8 billion in 2014.
Revenues from house and lots sales went up 12 percent to P58.4 billion from P52.3 billion in the previous year.
ALI said bookings and project completions of all its residential brands—Ayala Land Premier, Alveo, Avida, Amaia, and BellaVita—drove the growth, with sales reservations summing up to P105.3 billion.
High-end brand Ayala Land Premier registered revenues of P23.4 billion in 2015, edging up from its P23.1 billion 2014 revenues.
“This was driven by higher bookings at West Gallery Place in Bonifacio Global City and Riomonte in Nuvali, Laguna, and increased project completion of The Courtyards in Vermosa, Cavite, and high-end residential building projects, such as the Two Roxas Triangle and Garden Tower 2 at Ayala Center Makati, The Suites and East Gallery Place in Bonifacio Global City, Taguig and Park Point Residences in Cebu,” ALI said.
Alveo reported a 43-percent rise in revenues from the P10.3 billion it posted in 2014.
Driving this were higher bookings and completion of subdivision projects, such as Lumira and Mondia in Nuvali, Laguna and Montala in Alviera, Porac, Pampanga, and condominium projects, namely, Kroma in Makati, Veranda Tower 1 at Arca South, Taguig, Verve Residences 1, Park Triangle Residences and Two Meridien at Bonifacio Global City, Taguig, and Solinea Towers 1 and 3 in Cebu.
Similarly, the firm’s lower-end brands, Avida and Amaia, posted double-digit revenue growth, with Avida improving 12 percent to P14.7 billion and Amaia growing by eight percent to P3.9 billion.
ALI said increased bookings of Avida Settings at Alviera and One Union Place 1 and 2 at Arca South, combined with higher project completion of Vita Towers at Vertis North, Verte Tower 1 and The Montane at Bonifacio Global City, contributed to the increase in revenues of Avida.
Amaia’s major contributors are Steps Nuvali, Steps Altaraza in San Jose Del Monte Bulacan, and Scapes General Trias, Cavite, ALI noted.
ALI’s BellaVita brand likewise grew, with revenues tripling to P529.8 million in 2015, from P115.6 million in 2014.
Fueling this were project completions in General Trias, Cavite; Alaminos, Laguna; Tayabas, Quezon; Porac, Pampanga; and Cabanatuan City, Nueva Ecija.
Meanwhile, office space revenues grew 32 percent to P6.4 billion from the P4.9 billion in 2014, driven by bookings from Alveo Financial Tower in Makati central business district, The Stiles at Circuit Makati, completion of more Alveo’s projects, such as High Street South Corporate Plaza 1 and 2 and Park Triangle Corporate Plaza, and higher sales from Avida projects, such as Capital House and One Park Drive at Bonifacio Global City.
ALI’s shopping centers likewise posted an 18-percent increase in revenues at P13.4 billion, due to the improved performance of Fairview Terraces and UP Town Center and the higher occupancy and average rental rates of existing malls.
ALI said the gross leasable area (GLA) of all its shopping centers is pegged at 1.45 million square meters as of end-2015.
Meanwhile, ALI’s revenues from office leasing business reached P5.2 billion, 22-percent higher than last year’s P4.2 billion.
The company attributed this to higher occupancy and average rental rates of its existing office buildings and the positive contribution of new offices.
ALI’s revenues from hotels and resorts also increased in 2015 at P5.9 billion, six percent higher than P5.6 billion in the previous year.
Overall revenues from the firm’s commercial leasing business increased by 16 percent to P24.5 billion from the P21.2 billion posted in 2014.
ALI’s capital expenditures for 2015 reached P82.2 billion, raising the figure further to P85 billion this year.
“The company continues to adopt a positive view of the property market given the strong economic fundamentals of the country,” Dy said. “This year, we will remain focused on introducing new projects that will address market demand and continue to work on achieving our growth targets in line with the objectives set in our 2020 plan.”