Ayala Land 2014 profit grows 26% to P14.8B

0

Listed property developer Ayala Land Inc. (ALI) aims to boost its recurring income portfolio this year through more commercial leasing assets after posting robust earnings growth in 2014.

Advertisements

In a statement, ALI said its 2014 net income went up 26 percent to P14.8 billion from P11.7 billion in the previous year, surpassing its 20 percent earnings growth target. Revenues increased 17 percent to P95.2 billion from the previous year.

“We are pleased with the performance of each of our business lines in 2014 and their contributions to our overall growth. Moving forward, we will continue to introduce new residential projects and scale up our commercial leasing operations in support of our 2020 Vision,” said ALI president and chief executive officer Bernard Vincent Dy.

ALI’s 2020 Vision targets 20 percent net profit growth yearly to reach P40 billion by 2020.

As part of its strategy to increase its recurring income portfolio, ALI recently raised its stake in TriNoma developer North Triangle Depot Commercial Corp. to 73.24 percent from 49.29 percent last year.

In 2014, ALI launched four township complexes including Alviera in Pampanga, Altaraza in Bulacan, Arca South in Taguig, and Atria Park District in Iloilo, amounting to more than 1,200 hectares of developable land.

“Opportunities that will allow us to build integrated sustainable developments will remain our top priority. Not only do these estates become great places to live and work, but they also provide business and job opportunities to many Filipinos,” Dy said.

Sales of commercial, residential and industrial lots under ALI’s property development segment totaled P65.9 billion last year, 21 percent higher than the previous year’s P54.5 billion.

Residential revenues, on the other hand, increased by 26 percent to P55.9 billion due to strong bookings and project completion across all residential brands.

Its units Alveo and Avida—which recently ventured into office development—posted P5.3 billion aggregate revenues in new offices, a four-fold increase from the year before on strong reservations in office towers High Street South Corporate Plaza Towers, Park Triangle Corporate Plaza and One Park Drive in Bonifacio Global City.

“Sales across our various residential brands continue to be good, and we thank our customers for their continued trust,” Dy said.

For the commercial leasing segment which consists of its shopping center, office leasing and hotels and resorts portfolio, ALI’s revenues climbed 18 percent to P21.2 billion from P18 billion.

In particular, the hotels and resorts business grew by 40 percent to P5.6 billion from P4 billion on the good performance of new hotels and resorts.

Optimistic GDP outlook
The company is looking for improved growth this year across all its segments, hinged on the optimistic outlook for the country’s gross domestic product (GDP).

“We remain positive as we look at people projecting higher GDP growth—it will support our business also with low interest rates. When we look at overseas Filipinos’ remittances, that is good for our shopping malls and rental leasing business. For the BPO (business process outsourcing) segment which is also seen to grow double digit, demand for office space is good. Also, tourism continues to grow year on year, that supports our hotels business,” Dy told reporters on Monday.

For 2015, ALI is looking at “P100 billion to P120 billion” worth of project launches to keep pace with its 20 percent growth target yearly.

For its office portfolio, ALI will be launching about 300,000 square meters (sq m) in gross leasing area (GLA), with 106,000 sq m set to be completed within the year. Office towers for 2015 will rise in Alabang Town Center, Cebu, two in Bonifacio Global City (BGC), and one at UP Technohub.

For its mall developments, some 147,000 sq m GLA will be up for completion within the year out of the 197,000 sq m undergoing construction this year. These consist of seven malls in Nuvali in Sta. Rosa Laguna; BGC; UP; Ortigas; Tagaytay; Circuit, Makati; and Legaspi, Albay. Each mall will range from 15,000 sq to 40,000 sq m in size.

For hotels, the company is set to complete a 153-room hotel in Iloilo this year. ALI executives said a total of 2,000 hotel keys will be under construction until 2019.

ALI has programmed P100 billion in capital spending this year for the completion of ongoing developments and launches of new residential and leasing projects.

This year, ALI will start the launch and development of Bacolod Capitol, an integrated residential, retail, office and hotels estate, as well as an 11-hectare mixed-use project in Balintawak, Quezon City, among others.

ALI is involved in property development, commercial leasing, hotels and resorts, construction and property management of the Ayala Group.

It is the property unit of the conglomerate Ayala Corp., which also has other units across other industry sectors including Manila Water Company Inc., Globe Telecom Inc., Integrated Microelectronics Inc., Bank of the Philippine Islands, and LiveIt Investments, among others.

Share.
loading...
Loading...

Please follow our commenting guidelines.

Comments are closed.