MANILA, Philippines—Property giant Ayala Land Inc. reported a first-half consolidated net income of P2.91 billion, up 37 percent from P2.13 billion in the same period last year, with strong operating revenues, improved equity earnings from affiliates and effective cost control.

Consolidated revenue was P15.38 billion, up 32 percent from P11.63 billion. Operating revenues rose 26 percent to P13.71 billion, the company said.

Higher equity earnings from corporate investment vehicles in Bonifacio Global City, Cebu Holdings Inc. and Alabang Commercial Corp., also contributed to net income growth, it added.

Ayala Land also cited higher interest and other income, with increased cash balances and the sale in March of shares in three subsidiaries—Piedmont Property Ventures Inc., Stonehaven Land Inc. and Streamwood Property Inc.—generating P762 million in pretax capital gains.

Consolidated net operating income (NOI) reached P4.29 billion, up 16 percent year-on-year. However, overall NOI margin fell three percentage points to 31 percent as shopping center and property management margins dropped due to the continued closure of the Glorietta 2 mall in the Makati business district, the startup operations at the adjacent Greenbelt 5 mall, and reduced carpark volume because of the ongoing Ayala Center redevelopment, the company said.

Construction profit margins also dropped significantly due to highly competitive bids on large external contracts as well as rising costs of construction materials.

Overhead costs were kept at bay as general and administrative expenses increased 11 percent to P1.31 billion.

Ayala Land said it spent a total of P7.9 billion in the first half for project and capital expenditures, up 17 percent from P6.9 billion made in the same period last year. With editing by INQUIRER.net