LISTED Ayala Land Inc. saw its net income attributable to shareholders jump to P15.2 billion in the first six months of the year on the back of strong growth from its recurring income portfolio.
In a presentation on Monday, Ayala Land Chief Finance Officer Augusto Bengzon said the amount was a 12-percent increase from P13.54 billion in January to June 2018.
He also said revenues climbed by 4 percent to P83.2 billion in the first half from P80.4 billion year-on-year.
Real estate income stood at P81.9 billion in the six months, a 4-percent improvement from last year’s P78.5 billion, with property development revenues reaching P58.9 billion. This was supported by the office sales segment, which more than doubled to P10.1 billion; and commercial and industrial lot sales, which rose by 11 percent to P4.3 billion.
Commercial leasing revenues grew by 16 percent to P18.6 billion in the first half from P16.1 billion.
Revenues from its residential portfolio dropped by 11 percent to P44.5 billion from P50.1 billion, mainly due to the completion and full sell-out of projects under the Ayala Land Premier and Alveo brands.
The firm’s Avida and Amaia brands, meanwhile, saw their revenues surge by 28 percent to P10.6 billion and by 19 percent to P3.1 billion, respectively.
Reservation sales remained steady at P72.3 billion, with local buyers — 70 percent of the total — continuing to sustain demand. Overseas Filipino workers contributed 13 percent and foreign buyers, 17 percent.
Ayala Land aims to launch projects worth P111 billion in the second half to hit its full-year target of P130 billion. In the first half, it launched only P19.5 billion worth of properties.
Later this year, the company is set to launch Ayala Malls-Manila Bay and Ayala Malls-Central Bloc, Central Bloc 1, and BGC Corporate Center 2.
It will also open Seda Residences and unveil the expansion wing of Seda Bonifacio Global City.
Ayala Land is set to return to the bond market in the third quarter to issue as much as P5 billion in fixed-rate bonds. It tapped China Bank Capital Corp. to arrange the transaction.
Bengzon said the proceeds would be used to help fund its P130-billion capital expenditure program for the year. Ayala Land spent P49.5 billion in the first six months for expansion.
Ayala Land shares finished down by 3.63 percent or P1.85 to P49.15 apiece on Monday.