LISTED property developer Ayala Land Inc. (ALI) said Monday its net income increased 18 percent in the first quarter to P5.56 billion from P4.71 billion in the same period last year on the back of strong property sales.
In a disclosure to the Philippine Stock Exchange (PSE), Ayala Land said property sales take-up increased 10 percent to P27.3 billion driven by the growing demand for residential and office for sale products.
Consolidated revenues grew 17 percent to P31.64 billion, underpinned by the solid performance of its property development, commercial leasing, and services businesses.
“Property sales have been encouraging and our commercial revenues continue to be on an upward trajectory,” ALI President and Chief Executive Officer Bernard Vincent Dy said.
“Given these positive results, we remain committed to launch over P100 billion worth of projects to support our targets for the year,” he added.
ALI has said it is slated to launch three property projects this year—the 200-hectare Evo City in Kawit, Cavite; the 25-hectare Azuela Cove in Davao; and the 35-hectare joint venture project with the LT Group in Pasig and Quezon City.
As part of its 2020 vision, the company said it will also bolster its leasing business, which contributed 38 percent to its net income for the first three months of 2017.
Projects lined up this year are six shopping centers, including the recently launched Ayala Malls The 30th in Pasig City and Ayala Malls Vertis North in Quezon City, which will open this June. The company is also set to deliver 185,000 square meters of office space this year.
To boost its current hotels and resorts portfolio, it is opening its B&Bs at Lio in Palawan and it recently marked the soft opening of Seda Vertis North in Quezon City.
ALI said total revenues from property development in the first quarter rose 21 percent year-on-year to P19.72 billion, while revenues from commercial leasing increased 9 percent to P7.05 billion.
It said project and capital expenditures in the first three months amounted to P2.18 billion, of which 46 percent went to the completion of residential projects, 37 percent to commercial leasing projects, 14 percent to land acquisition, new businesses, services and other investments, and 3 percent to estates development.