PROPERTY giant Ayala Land Inc. (ALI) said net income in the first quarter rose 14 percent to P4.7 billion from P4.12 billion posted in the same quarter of last year on the sustained growth of its diverse property development businesses nationwide.
Consolidated revenues amounted to P26.97 billion, an 8 percent increase from the P25.06 billion recorded in the same period last year.
“The first quarter of 2016 saw the company sustaining its business platform of developing large-scale integrated mixed-use estates, as well building on the positive performance of its residential and commercial leasing businesses,” ALI said.
The company said it currently has a total of 18 estates that add up to almost 9,000 hectares of land, with multiple projects underway in each one.
For its residential arm, ALI reported a 17 percent increase in revenues to P14.47 billion from a year earlier, driven by bookings and project completion across all residential brands.
Several of its residential brands launched new projects in the first quarter, including Ayala Land Premier’s Riomonte in Nuvali, Alveo Land’s Montala in Alviera and Avida Land’s One Union Place in Arca South and Avida Towers Sola in ALI’s Vertis North estate in Quezon City.
Its mall development segment posted 15 percent revenue growth in the first quarter to P3.61 billion from the P3.16 billion registered in the same period last year.
ALI recently entered the Bicol region with Ayala Malls Legazpi, which added a total of 29,000 square meters of leasable space to its total shopping center gross leasable area (GLA) of 1.45 million square meters.
“Ayala Malls Legazpi marks our entry into the Bicol region. This is in line with our plans to expand our presence in key geographic growth centers in the country, to reach and serve more Filipinos and contribute to the local economies,” said ALI president and chief executive officer Bernard Vincent Dy.
ALI also opened two new malls during the quarter, namely Solenad 3 and UP Town Center.
Meanwhile, its office development and leasing businesses continued to grow in the first three months, with revenues from the sale of office spaces up 35 percent year-on-year at P1.19 billion.
ALI noted that the first quarter saw the opening of the BGC Corporate Center and as well as the launch of Park Triangle Corporate Plaza- South Tower, both of which are in Bonifacio Global City.
Revenues from office leasing grew 13 percent from a year ago to P1.36 billion, driven by higher occupancy and average rental rates of existing buildings and the positive contribution of new offices.
The hotels and resorts business saw revenues in the quarter drop 2 percent from a year ago to P1.48, which ALI attributed to the closure of InterContinental Manila, but it said this was offset by the higher occupancy rate of its Seda Nuvali hotel.
Despite the slight slowdown in hotel revenues, Dy remains positive about the company’s growth outlook.
“ALI’s first quarter earnings remain positive and reflect the steady performance of our core business units. With the strong economic fundamentals of the country, we continue to expand in existing locations and prime up our emerging and new estates,” Dy said.
The company said it spent P23.4 billion for project and capital expenditures in the first quarter.
“Of the total capital expenditure, over 50 percent was spent on the completion of residential projects and on commercial leasing projects with the rest of the amount disbursed for new businesses and other investments,” ALI said.
To further support its growth plans, ALI recently raised P8 billion and P7 billion, representing the first and second tranches of its approved P50-billion debt securities program which will be issued over the next three years.