Ayala Land profit up on higher dev’t revenues
Ayala Land Inc. (ALI) saw its net earnings grow by 55 percent to P13.3 billion during the nine months ending in September on higher property development revenues, reservation sales and commercial leasing income.
The Ayala-led property developer, in a disclosure on Tuesday, reported that its consolidated revenues increased in that period by 19 percent to P86.3 billion.
For the third quarter alone, its net income more than doubled to P5.3 billion while revenues improved by 39 percent to P33 billion.
The listed company grew its property development revenues by 7 percent to P55.2 billion in January to September. Commercial lot sales improved by 82 percent to P7.5 billion while residential revenues inched up 2 percent to P45.6 billion.
Reservation sales climbed by 10 percent to P77.3 billion during the nine-month period.
ALI said the projects that received the most demand were Ayalaland Premier’s Ciela at Aera Heights in Carmona, Cavite, Parklinks North Tower in Quezon City, Amaia’s Skies Cubao Tower 3 in Quezon City and Avida’s Serin East Tower 4 in Tagaytay City.
In the third quarter, ALI launched eight new projects, bringing the total to 20 developments amounting to P60 billion.
Commercial leasing revenues, meanwhile, surged by 64 percent to P23.3 billion on the back of mall rentals, contribution of new leasing spaces and higher hotel room rates.
“The acceleration in business and consumer activity during the period enabled us to generate significant earnings growth,” ALI president and CEO Bernard Vincent Dy said.
“The demand for our residential products remained resilient and local consumption continues to be robust despite geopolitical and macroeconomic challenges. We believe the strength of our local market will provide the backbone to sustain the growth of our diversified real estate portfolio for the rest of the year,” he added.
Capital expenditures amounted to P44.7 billion, the bulk or 55 percent of which were spent on residential projects. The remaining was allocated for commercial projects, land acquisition, estate development and other purposes.
In March, ALI said it was eyeing to deliver P100-billion worth of new inventory in the real estate market this year.