ALI profit hits P7.3B as of March, up 12%

Property giant Ayala Land Inc. (ALI) grew net profit in the first three months by 12 percent year-on-year to P7.3 billion on higher earnings from residential development and commercial leasing portfolios.

Total revenues went up by 7 percent year-on-year to P39.7 billion, ALI disclosed to the Philippine Stock Exchange on Tuesday.

“We continue to experience consistent growth in all our business lines.  Notable was the strength of our commercial portfolio as the asset build-up over the last few years moved the business forward.  Our development business also continues to grow in line with expectations, posting a healthy increase in reservation sales due the sustained demand from local and overseas Filipinos,” ALI president Bernard Vincent Dy told the PSE.

Revenues from property development rose by 4 percent year-on-year to P26.1 billion for the three-month period. As an indicator of future revenue growth from development, sales reservations likewise grew by 8 percent to P34.1 billion for the quarter.

ALI’s commercial leasing business—which includes the operation of shopping centers, offices, hotels and resorts—generated total revenues of P9.2 billion, marking a 19-percent improvement year-on-year.

Revenues from shopping centers alone accelerated by 14 percent year-on-year in the first three months to P5.1 billion, with the opening of new shopping centers such as Ayala Malls Feliz, Circuit Makati, Capitol Central, Vertis North and Cloverleaf, as well as the strong performance of Glorietta and Greenbelt malls in Makati City.

Office leasing revenues reached P2.2 billion, 27 percent higher year-on-year. Newly opened offices such as Ayala North Exchange Towers 1 and 2, Circuit Corporate Center Towers 1 and 2, and Vertis North Corporate Center Towers 1 and 2 contributed to the increase.

Revenues from hotels and resorts reached P1.9 billion, rising by 25 percent from the same period last year, with the growing contribution from recently opened Seda hotels in Vertis North, Ayala Center Cebu and Lio. —DORIS DUMLAO-ABADILLA