Property giant Ayala Land Inc. grew its net profit in the first nine months by 18 percent year-on-year to P17.8 billion on the back of a double-digit growth in combined revenues from property development and leasing portfolio.
Optimistic on its growth trajectory, ALI said on Tuesday it’s keen to achieve its annual net income target of P40 billion in 2020.
Consolidated revenues amounted to P98.9 billion for the first three quarters of this year, 16 percent higher year-on-year, ALI disclosed to the Philippine Stock Exchange on Tuesday.
Exceeding planned target levels, property sales reached P94.2 billion, 12 percent higher than the P84.32 billion reported in the same period last year.
Driven by the expansion of its commercial business, combined revenues from shopping centers, offices, hotels and resorts also grew by 10 percent to P21.1 billion.
“We have seen a marked increase in our residential property sales in the first three quarters of 2017. Together with the continued build-up of our leasing assets, this has led to a strong top and bottomline growth for the company. Moving forward, we remain committed to introducing market-responsive products that will better serve our customers and sustain the business results of the company,” said ALI president and chief executive officer Bernard Vincent Dy.
Total revenues from property development – which includes the sale of residential lots and units, office spaces – as well as commercial and industrial lots, amounted to P68.4 billion in the past nine months, 30 percent higher than the level in the same period last year.
ALI brought to the property market P53.9 billion worth of residential and office for sale projects in the past nine months.
Recurring income businesses are likewise gaining ground. Shopping centers posted revenues of P11.8 billion with its total gross leasable area (GLA) reaching 1.7 million square meters.
The company recently opened Ayala Malls Cloverleaf in addition to Ayala Malls The 30th in Ortigas Center and Ayala Malls Vertis North in Quezon City. It is set to complete Ayala Malls Feliz and Ayala Malls Marikina within the year.
The office property segment contributed revenues of P4.47 billion and maintained its steady GLA growth to a total of 909,000 square meters as the business unit completed Circuit BPO (business process outsourcing) Tower 2 and The 30th Corporate Center. It is seen on track to complete Vertis North BPO Tower 2 and Circuit BPO 1 within the year.
The company’s hotels and resorts business contributed revenues of P4.83 billion as it increased its number of rooms to 2,509 at end-September from 2,477 at end-June with the opening of new rooms in Balai Adlao, Lio and Balay Kogon in Sicogon. It is scheduled to open the 154-room Seda Capitol Central in Bacolod and 20-room Hotel Covo in Lio this year.