Ayala Land Inc. (ALI), a unit of the Ayala Corp. conglomerate, is expecting to post a 20 percent increase in net income for 2014 due to sustained margins across all business segments.
ALI is involved in property development, commercial leasing, hotels and resorts, construction and property management. ALI President and Chief Executive Officer Bernard Vincent Dy told reporters in a briefing on Monday that the projection is based on the company’s strong first-half results, with a 25-percent jump in net income.
“We want to increase the margins over time. We expect very stable margins within the year…We see that we will be able to sustain [20-percent growth by yearend],” Dy said.
“We’re well positioned to take advantage of the economic environment. We see product line shopping centers expanding, BPO [business processing outsourcing segment], office buildings, hotels through the Seda brand expanding to another format for provincial expansions,” said Jaime Ysmael, ALI’s chief finance officer.
For the first half, ALI recorded P7.1-billion in net income, 25 percent higher than the P5.6 billion earned last year, due to gains across its businesses, the company said. Its property development sector, which includes sale of residential and office units, as well as commercial and industrial lots, gained P29.3 billion in revenue, which is 28 percent higher than P222.8 billion posted a year ago.
Dy said residential posted the highest growth among all segments, achieving an all-time high of P48.5 billion in residential product sales, equivalent to P8.1 billion average sales take-up monthly. Residential sales as of end-June stood 40-percent higher at P24.3 billion on strong booking and project completion of projects.
ALI launched 5,525 units from its five residential brands, amounting to P26.8 billion. The five brands are Ayala Land Premier, Alveo, Avida, Amaia and BellaVita. ALI’s commercial segment booked P10.4 billion in sales, a 22-percent increase from P8.5 billion in 2013.
Office leasing revenues jumped 31 percent to P2.1 billion from P1.6 billion on the back of the expansion of the gross leasing area to 526,160 square meters as of end-June. Hotel and resorts revenues surged 48 percent to P2.8 billion from P1.9 billion due to contributions from Holiday Inn, Fairmont Hotel and Raffles Residences, and the Seda Hotels. In terms of construction and property, ALI booked P14.6 billion in sales, up 39 percent from P10.5 billion.
Ysmael said the company had spent 49 percent to 50 percent or P32 billion of the P70-billion capital expenditures (capex) for 2014.
Dy said that they are “on track” with the targets and are optimistic about the company’s business segments. Kristyn Nika M. Lazo