Property giant Ayala land Inc. grew its net profit in the first semester by 12 percent year-on-year to P15.2 billion as higher earnings from commercial leasing and office condominium and lot sales made up for the decline in residential development revenues.
Total revenue increased by 4 percent year-on-year to P83.2 billion during the period, led by office sales and commercial leasing businesses.
“We continue to benefit from the strong economic growth of the country,” said ALI president and chief executive officer Bernard Vincent Dy in a press release on Monday (Aug 5).
Demand for residential, office and commercial properties translated to real estate revenues of P81.9 billion in the first semester. Property development revenues amounted to P58.9 billion, supported by the office for sale segment which grew by more than two-fold to P10.1 billion. Commercial and industrial lot sales increased by 11 percent to P4.3 billion.
Commercial leasing revenues jumped by 16 percent year-on-year to P18.6 billion. Shopping center revenues grew by 12 percent to P10.3 billion in the first semester, supported by same mall revenue growth of 11 percent. This was attributed to the increased contribution of Ayala Malls Feliz, Circuit Makati and Capitol Central, which supplemented the strong operations of Glorietta and Greenbelt in Makati, and Ayala Center Cebu. Six-month office leasing revenues also went up by 25 percent year-on-year to reach P4.6 billion as newly-opened offices in Ayala North Exchange, Vertis North and Circuit Makati gained traction.
The hotels and resorts segment also saw a 17 percent year-on-year growth six-month in revenues to P3.7 billion, due to strong performance of Seda Ayala Center Cebu, and Lio.
Redidential revenues for the six-month period stood at P44.5 billion, 11 per lower than the previous year mainly due to the full sell-out and completion of earlier projects launched by Ayala Land Premier and Alveo. /TSB