Ayala Land profit jumps 30%

Screen grab from www.ayala.com.ph website

MANILA, Philippines—Property giant Ayala Land Inc. (ALI) said net profit in the first nine months of the year hit P8.6 billion, up 30 percent from a year ago, putting it within reach of a five-year, P10-billion income target a year ahead of schedule.

The company said in a Philippine Stock Exchange filing that the gains were due to the strong performance across its property development, commercial leasing and services businesses. It said consolidated revenues during the period hit P57.7 billion, up 38 percent.

Revenues from the residential segment alone reached P28.22 billion, or 23 percent higher compared to the same period last year, driven by strong bookings across all residential brands, the company said.

ALI’s five residential brands launched a total of 12,196 units in the first nine months of 2013, with a total sales value of P51.07 billion. Average monthly sales takeup reached an all-time high at P7.55 billion, up 17.42 percent.

“We are pleased with the organization’s steady and high growth performance, which should exceed our aggressive P10-billion target ahead of our five-year plan,” said Antonino Aquino, ALI president and CEO.

Revenues from its real estate and hotels businesses increased by 39 percent to P55.78 billion, which comprised the bulk of its consolidated revenues, the company said.

Property development, which includes the sale of residential lots and units, office spaces, as well as commercial and industrial lots, posted revenues of P37.02 billion in the first nine months of the year, 51-percent higher than the P24.57 billion reported during the same period in 2012.

High-end unit Ayala Land Premier posted a revenue growth of 30 percent year-on-year to P11 billion, driven by higher sales and percentage of completion from premium condominium units.

Another major revenue contributor was the sale of commercial and industrial lots, which increased by 416 percent in the first nine months to P8.22 billion. ALI attributed this to the sale of commercial lots in the Arca South property in Food Terminal Inc.

Revenues from commercial leasing and shopping centers, office leasing and hotels and resorts operations jumped 22 percent to P13.13 billion during the first nine months.

Services, which include wholly owned construction and property management companies, generated combined revenues of P17.21 billion, up 18 percent.