Ayala Land 2016 profit grows 19% to P20.9B

0

PROPERTY giant Ayala Land Inc. (ALI) said on Wednesday its net income last year grew by 19 percent to P20.9 billion, driven by brisk property development and the steady performance of its commercial leasing business.

Last year’s profit growth is in line with its 2020 Vision, whereby the company aims to grow its profits by 20 percent yearly to reach P40 billion by 2020.

In a statement, ALI said its consolidated revenues in 2016 rose 16 percent from a year earlier to P124.6 billion. Property development revenues grew 17 percent to P79.2 billion while commercial leasing revenues increased 8 percent to P26.6 billion.

For the fourth quarter of 2016, ALI said profit improved 25 percent year-on-year to P5.8 billion while revenues grew 77 percent to P39 billion.


Bernard Vincent O. Dy, ALI president and chief executive officer, said in a press briefing that 2016 was another banner year for Ayala Land.

“Looking to 2017, we feel that the company continues to be well positioned to capitalize on the growth of the economy. Our land bank is close to 10,000 hectares, which is an increase of 1,000 hectares from a year ago,” he added.

In 2016, ALI launched P61.5 billion worth of residential and office products under its five residential brands Ayala Land Premier, Alveo, Avida, Amaia, and BellaVita., boosting residential sales by 3 percent to P108 billion.

Mall revenues rose 12 percent to P15 billion on the successful performance of its established malls and the contribution of new malls such as Solenad and UP Town Center.

Office leasing revenues increased 7 percent to P5.5 billion on the increasing contribution of newly opened offices such as UP Town Center BPO and Bonifacio Stopover at Bonifacio Global City (BGC). However, revenue from its hotels and resorts business was nearly flat at P6.1 billion.

By end-2016, ALI reached a total of 1.62 million square meters (sqm) of gross leasable space for its malls due to the completion of new malls like Ayala Malls Legaspi and Ayala Malls South Park, and the additional 55,920-sqm of commercial space from Tutuban Center in Manila. Tutuban Center is under ALI through its acquisition of a majority interest in Prime Orion Philippines Inc. (POPI) in 2016.

Total gross leasable space in the offices segment hit 835,742 sqms after the addition of newly opened offices in its portfolio. Hotels and resorts posted a total of 2,027 rooms, including the newly opened Casa Kalaw at Lio in El Nido, Palawan and Balay Kogon in Sicogon, Iloilo.

“Last year, we launched a good mix of residential and commercial properties in both our established and emerging estates. And with the government’s thrust to increase spending on infrastructure, we also plan to accelerate the development of our estates that are closely linked to these projects,” Dy said.

The company introduced two key mixed-use developments last year—One Ayala at the Makati central business district (CBD) and the 17.5-hectare Gatewalk Central in Mandaue, Cebu City, bringing its township count to 20 across the country. This boosted the revenue share of townships to 40 percent from 36 percent previously.

Bigger capex this year
ALI is programming P88 billion in capital expenditures (capex) this year, up from the actual spending of P85.4 billion last year, said Jaime Ysmael, the company’s chief financial officer.

Bulk or P40.7 billion of the capex will go to residential projects, followed by malls (P11.8 billion), land acquisition initiatives (P10.6 billion), office towers (P9.2 billion), township estate development (P5.5 billion), hotels (P4.4 billion), and the P6 billion balance will be for other corporate purposes.

Ysmael said this year’s capex will be mainly funded by internally generated cash with about P15 billion to P20 billion to be raised from the debt market.

This year, the company plans to complete seven shopping centers with 224,000 sqms of gross leasable space. These include the recently opened Ayala Malls The 30th in Pasig, Ayala Malls Vertis North in the Quezon City CBD, Ayala Malls Feliz in Cainta, and Ayala Malls One Bonifacio High Street in BGC.

ALI will also open this year its largest Seda hotel at Vertis North in Quezon City with 438 rooms and its first resort-type hotel, Seda Lio in El Nido, Palawan with 153 rooms.

Share.
.
Loading...

Please follow our commenting guidelines.

Comments are closed.