PROPERTY GIANT AYALA LAND INC. YESterday reported its best quarterly profit for this year in the third quarter but overall nine-month results were still weaker compared to the same period last year due to a sluggish start this year.

In a disclosure to the Philippine Stock Exchange, ALI reported a third-quarter net profit of P1.26 billion, up by 26 percent over a year ago. This brought net profit for the first nine months to P3.33 billion, which was still 20 percent lower than a year ago.

Net income attributable to equity holders amounted to P2.92 billion in the first nine months, down from P3.84 billion in the same period last year.

The hotel business posted an 8-percent drop in revenue in January to September due mainly to lower occupancy and average room rates of Hotel Intercontinental Manila.

There was also a 25-percent drop in income contribution from Cebu Holdings Inc. and Fort Bonifacio Developments Corp

The decline in profit this year was also due to the absence of nonrecurring gains from asset sales that boosted profit in March 2008.

On the cost side, the company reported a 6-percent drop in real estate costs and expenses during the nine-month period due to project cost control initiatives.

Excluding nonrecurring items, the company’s core net income rose by 9 percent to P1.05 billion in the third quarter, from P964 million in the previous quarter. This was achieved largely through improved margins and a reduction in general and administrative costs. The strategic landbank management business registered an improvement in margin while residential and construction margins have stabilized.

The growth in third quarter earnings helped ALI post a nine-month core net income of P2.9 billion, just 8 percent lower than the core earnings recorded a year ago.

“We maintained an upward trend in terms of revenues and earnings in the third quarter of this year, largely driven by improved margins and effective cost discipline,” said Jaime Ysmael, ALI’s senior vice president and chief finance officer.

The improvement in the third quarter brought consolidated year-to-date revenue to P22.56 billion for the first nine months, just 6 percent lower than a year ago.

Residential development revenue hit P10.5 billion in the first nine months, down by 2 percent over a year ago.