QUARANTINE restrictions continued to hamper the operations of Ayala Land Inc. (ALI) as its earnings declined by 36 percent to P2.8 billion in January to March.
In a disclosure on Tuesday, the property giant reported that its consolidated revenues also slipped 13 percent to P24.6 billion in the first quarter.
ALI’s property development revenues slipped 6 percent year-on-year to P16.2 billion during the period, cushioned by higher bookings and construction progress.
The company’s residential revenues fell to P13.6 billion from P13.8 billion last year.
Revenues from the sales of its office units jumped to P1.8 billion, up 85 percent from P962 million, while revenues from sale of commercial and industrial lots slumped by 67 percent to P818.4 million from P2.5 million.
ALI’s sales reservations for the period, on the other hand, ended 15 percent higher to P28.5 million from P24.7 billion year-on-year amid sustained local demand.
Commercial leasing revenues of the firm, meanwhile, stood at P5.1 billion, down 41 percent year-on-year as operations of malls, hotels and resorts remained restricted.
The revenues of shopping centers likewise fell by 58 percent to P2 billion in the first quarter due to limited operations, low foot traffic and discounted rental rates.
Despite the decline, the segment’s leasing revenues improved by 13 percent quarter-on-quarter.
“Our commercial leasing businesses improved quarter-on-quarter but these are not expected to fully recover until mobility restrictions are eased,” ALI President and Chief Executive Officer Bernard Vincent Dy explained in the disclosure.
Hotel occupancy also remained low and resorts were closed since the reimposition of tighter quarantine restrictions in end of March resulting in hotels and resorts revenues of P640 million, a 60-percent drop year-on-year.
The sustained business process outsourcing and headquarters operations enabled ALI’s office leasing revenues to inch up by 2 percent year-on-year to P2.5 billion last quarter.
“Looking at our total portfolio, we expect our capital expenditures, product launches and completions to drive our performance this year amidst the ongoing challenges caused by the pandemic,” Dy noted.
ALI launched six projects worth P17.4 billion in the first quarter.
It looks to introduce P100-billion worth of project launches for this year.
Shares of ALI lost 45 centavos, or 1.39 percent to close at P31.85 apiece on Tuesday.