On track with FY income target of P40B
PROPERTY giant Ayala Land, Inc. (ALI) said net income jumped by 18 percent in the first half of this year on the back of solid contributions from its property development and leasing businesses.
ALI said net income in the first six months grew to P11.5 billion from P9.7 billion a year ago.
Consolidated revenues also increased by 18 percent to P64.5 billion from last year’s P54.8 billion. Revenues from real estate were likewise up by 18 percent at P60.5 billion.
“More than half of company revenues came from property development, which includes the sale of residential lots and units, office spaces, as well as commercial and industrial lots,” ALI said in a disclosure to the Philippine Stock Exchange.
Property sales in the first half hit P61.4 billion, higher by 11 percent from last year, translating to average monthly sales of P10.2 billion.
“We’ve seen residential sales pick up in 2017, after a few years of relatively flat growth. Given our pipeline of launches for the balance of 2017, we remain positive that we can sustain the growth in the second half of the year,” ALI President and Chief Executive Officer Bernard Vincent Dy said.
“At the same time, our leasing business continues on its steady upward trajectory given the increasing contribution of our new shopping centers, offices and hotels,” he added.
ALI said it remains on track in achieving its P40-billion target income.
During the first half, the company launched the 200-hectare Evo City in Kawit, Cavite, which is envisioned to become a new central business district in the area. It also opened an Ayala mall and its largest Seda hotel in Vertis North, an emerging estate located at Quezon City’s future central business district. It also introduced Ayala Land Premier’s Cerilo, an 85-hectare upscale residential community in its flagship sustainable estate, Nuvali, Laguna.
“Our sustainable estates serve as platforms for growth as we expand to new geographies across the country. Our latest estate, Evo City in Kawit, was well received by the market when we introduced its first residential project in May. We look forward to the launch of two more estates in 2017, Azuela Cove in Davao and Parklinks along C5 in Quezon and Pasig cities,” Dy said.
Total revenues from property development amounted to P44.3 billion, up 32 percent from a year ago, while total revenues from commercial leasing amounted to P14.17 billion, up 11 percent year-on-year.
For the first half, ALI said capital spending amounted to P41.6-billion—of which 48 percent was spent on the completion of residential projects and 33 percent was spent on commercial leasing projects. About 12 percent was spent on land acquisition, new businesses, services and other investments while 7 percent was spent on the development of its estates.
Last July, ALI issued and listed on the Philippine Dealing and Exchange Corp. short-dated notes worth P4.3-billion due 2019, carrying a fixed coupon rate of 2.75 percent, to partially finance capital expenditures.
ALI is the property unit of conglomerate Ayala Corp.
with CHARISSA NEMIS