Property giant Ayala Land Inc. (ALI) reported 19 percent growth in net income for the first half, driven by the sustained momentum of its real estate business units.
In a disclosure, ALI said net income for the first six months of 2015 rose to P8.39 billion from P7.05 billion in the same period last year, while consolidated revenues increased 10 percent to P50.61 billion.
“We are pleased with our first half results and attribute gains to the consistent contributions of our different business units,” ALI president and CEO Bernard Vincent Dy said.
“Development continues in all our estates, with products in residential, shopping centers, offices and hotels on the rise. We are on track relative to our annual target and we plan to sustain the momentum with new launches in the coming months,” he said.
Revenue from the property development unit grew to P31.85 billion in the first half, a 9 percent increase from the P29.30 billion recorded in the same period last year from sales of residential lots and units, office spaces as well as commercial and industrial lots,
The commercial leasing unit, which covers the operation of shopping centers, offices and hotels and resorts, posted revenue of P11.4 billion, up 10 percent from a year ago.
The construction and property unit generated combined revenues of P19.9 billion, up sharply from the P14.57 billion registered in the same period last year.
Dy said the company is targeting to build large-scale mixed-use developments strategically located in the country’s emerging growth centers. He added that they will also continue to widen their offerings.
“Our residential brands continue to introduce new offerings within our estates. In our commercial business, we recently opened Ayala Malls’ Solenad 3 at Nuvali, as well as our very first Merkado supermarket at the UP Town Center. In all these developments, we are pleased with the build-up of economic activity, creating new opportunities and employment for many people,” he said.
The company said P54.85 billion worth of residential projects were launched in the first half of the year, with reservation sales rising by 8 percent to P52.47 billion while revenues from the residential segment amounted to P26.93 billion, a 10 percent year-on-year increase.
Ayala Land Premier, the firm’s luxury property development unit, posted total revenue of P10.82 billion, a 16 percent increase from the P9.30 billion recorded in the same period last year.
Its other property development units also reported strong performances. Alveo posted total revenue of P6.90 billion, 22 percent higher year-on-year; Avida turned in P6.6 billion in revenues, up 14 percent from last year; and Amaia generated revenues of P1.77 billion, up 23 percent from a year ago.
Revenue from shopping centers grew 9 percent to P6 billion in the first half, driven largely by contributions from Fairview Terraces, which opened in 2013, and the higher occupancy and average rental rates of existing malls.
On the other hand, revenue from the office leasing unit advanced 16 percent to P2.43 billion as average occupancy rates improved to 92 percent from 91 percent a year earlier.
The hotel and resorts portfolio generated revenues of P2.96 billion, up 8 percent year-on-year, largely due to the improved revenue per available room (REVPAR) performance of ALI’s internationally branded hotels, its own SEDA hotels, and El Nido Resorts in Palawan.
The company said revenue from construction rose 36 percent to P19.21 billion while income from property management grew 45 percent to P688 million as the number of managed properties from completed projects also increased.
ALI said it has so far spent a total of P41.1 billion in capital expenditures for project construction and land acquisition.