Property giant Ayala Land Inc. grew net income in the first quarter by 18 percent year-on-year to P5.56 billion on higher earnings from property development and commercial leasing.
“Our core businesses delivered strong results in the first quarter of 2017,” ALI president and chief executive officer Bernard Vincent Dy said in a disclosure to the Philippine Stock Exchange on Monday.
The first quarter performance translated to a return on equity stood of 15 percent.
“Property sales have been encouraging and our commercial revenues continue to be on an upward trajectory. Given these positive results, we remain committed to launch over P100 billion worth of projects to support our targets for the year,” he said.
Consolidated revenues reached P31.64 billion for the first three months, 17 percent higher compared to last year’s level. The growth was attributed by the company to the “solid” performance of its property development, commercial leasing and services businesses.
As an indicator of future revenue growth, property sales take-up likewise increased by 10 percent year-on-year to P27.3 billion in the first quarter, driven by the growing demand for residential and office for sale products.
Total revenues from property development in the first quarter amounted to P19.72 billion, 21 percent higher than the level posted in the same period in 2016. Revenues from commercial leasing amounted to P7.05 billion, 9 percent higher than last year’s level.
The company spent a total of P21.8 billion for project and capital expenditures in the first three months of 2017. Of the total capital expenditure, 46 percent was spent for the completion of residential projects, 37 percent for commercial leasing projects, 14 percent for land acquisition, new businesses, services and other investments, and 3 percent for the development of its estates.