Ayala Land nets P3.4B in 1st half

MANILA, Philippines—Ayala Land Inc. grew its first-semester net profit by 35 percent to P3.38 billion from a year ago on the back of robust revenues from real estate sales and rental operations alongside improved operating margins.

Consolidated revenues for the period reached P21.25 billion, 15 percent higher than the level last year, the bulk of which came from real estate and hotels. Largely driven by property development and commercial leasing businesses, this segment grew revenues by 15 percent to P19.99 billion.

ALI’s net income margin for the first six months of the year improved to 16 percent from 14 percent last year as tight control of project and operating costs boosted gross profit margins of residential unit and commercial lot sales as well as the operating margins of business process outsourcing office buildings and the hotels and resorts business.

“We are pleased by the continued robust performance of our major business lines in the first half of the year, with revenue growth kept at the double-digit level,” said ALI president Antonino Aquino. “We continue to outdo our own record in monthly sales take-up for residential launches, averaging about P4 billion, and our commercial leasing operations are maintaining good occupancy and lease rates.”

Aquino said ALI was on track with its project launch schedule for the year and was excited about the upcoming launches in new growth centers across the country.

“The Philippines continues to have sound economic fundamentals, which our strategies are premised on. Thus, we remain optimistic about the rest of 2011,” Aquino added.

Property development, which includes the sale of residential lots and units, as well as the sale of commercial and industrial lots, posted revenues of P12.34 billion in the first six months, 27 percent higher than the level a year ago. Revenues from the residential segment reached P11.29 billion, 21 percent higher than the previous year’s, driven by the higher value of bookings and significant progress on construction across all residential brands—Ayala Land Premier, Alveo, Avida and Amaia.

Sales take-up value for the first six months reached P23.81 billion, equivalent to an average monthly sales take-up of P3.97 billion. This was 44 percent higher than the average monthly sales take-up achieved for the whole of 2010.

The property company’s four residential brands launched a total of 6,625 units in the first half of 2011, with the programmed schedule of launches for the rest of the year remaining on track, the bulk of which will fall under the Amaia brand, which represents the company’s recent foray into the lower-income housing segment.

Revenues from the sale of commercial and industrial lots reached P1.05 billion in the first six months, 178 percent higher than in the same period last year, largely due to the sale of 10 commercial lots in Nuvali and 1.4 hectares of industrial lots at the Laguna Technopark.

Six-month revenues from commercial leasing, including the company’s shopping center and office leasing operations, amounted to P3.49 billion, 17 percent higher than the level recorded in same period last year.

Shopping centers contributed P2.32 billion in revenues, up 9 percent, due mainly to higher average occupancy and lease rates. Average occupancy rate across all malls reached 96 percent compared with 93 percent in the first half of 2010. The opening of the 53,000-square-meter Abreeza Mall in Davao City and the continued improvements in the occupancy of Market! Market!, MarQuee Mall and TriNoma resulted in a 7-percent expansion in occupied lease space or gross leasable area.

Office leasing revenues increased 39 percent to P1.18 billion from a year ago due to higher occupancy of BPO office space.