Property giant Ayala Land Inc. grew net profit in the first semester by 18 percent year-on-year to P13.5 billion on greater earnings unlocked from its property development and commercial leasing businesses.
For the second quarter alone, ALI’s net income rose by 18 percent year-on-year to P7.02 billion while revenues rose by 32 percent year-on-year to P43.4 billion.
“The economy continues to be very supportive of the property sector, as you could tell from our results,” ALI president Bernard Vincent Dy said in a press briefing on Monday, citing growth across all product lines and market segments.
“For the balance of the year, given what we’re seeing in the economy, we’re quite optimistic that we will sustain the growth that we’ve achieved in the first half of the year,” Dy said.
Total revenues in the first six months went up by 25 percent year-on-year to P80.4 billion, buoyed by the development of mixed-use estates across the country.
The residential business remained robust in the first semester. As an indicator of future revenue growth, sales reservation went up by 17 percent year-on-year to P72 billion, equivalent to an average monthly take-up of P12 billion.
Total revenues from property development, which includes the sale of residential lots and units, office spaces, and commercial and industrial lots, amounted to P55.7 billion, 27 percent higher than in the same period last year.
Revenues from residential business grew by 32 percent to P47.7 billion, driven by new bookings and project completions.
Commercial and industrial lot sales also contributed to revenue growth, reaching P3.9 billion in the first six months or 16 percent higher than in the same period last year.
The company also recognized revenues of MCT Bhd, ALI’s equity investment in Malaysia, which booked P4 billion in sales.
ALI’s commercial leasing business, which involves the operation of shopping centers, office buildings and hotels and resorts, reported total revenues of P16.9 billion, 15 percent higher than in the previous year.
The company spent a total of P48.4 billion for capital outlays in the first six months. —DORIS DUMLAO-ABADILLA