Ayala Land 2022 profit jumps 52% on strong commercial lot sales

Ayala Land Inc. said 2022 profit rose by 52 percent to P18.6 billion as expanding commercial lot sales and mall and office rentals offset a slowdown in residential revenues.

While recording robust gains for the year, the property giant’s 2022 income remained about 40 percent below core prepandemic profits in 2019.

Ayala Land underscored a diversified portfolio that would help the developer weather “challenges” in the postpandemic era.

“Despite ongoing challenges in the operating environment, we remain positive in our outlook for 2023, and look forward to introducing new offerings that will meet the evolving needs of the market,” Ayala Land president and CEO Bernard Vincent O. Dy said in a statement on Tuesday.

“We are encouraged by our solid performance in 2022, driven by the full reopening of the Philippine economy and the support of our customers. All major business lines achieved meaningful recovery, a testament to our employees’ hard work and dedication,” he added.

Ayala Land’s overall property development revenues expanded by 7 percent to P81.2 billion.

Commercial lot sales soared 75 percent to P14.5 billion. However, residential sales saw “a slight dip” to P63.5 billion due to extended downpayment terms.

This came as the Bangko Sentral ng Pilipinas started aggressively raising interest rates to tamp down stubborn inflation.

“Our focus on customer satisfaction, operational excellence, and innovation will continue to guide our efforts as we pursue sustained growth,” Dy said.

Office-for-sale revenue declined by 16 percent to P3.2 billion on slower demand for new office spaces.

Commercial leasing, whose revenue rose 62 percent to P33.4 billion, was lifted by existing office rentals and the recovery of shopping malls after pandemic restrictions were relaxed.

Shopping centers and hotel revenue doubled to P16.1 billion and P6.2 billion while office rentals grew 13 percent to P11.1 billion following the opening of One Ayala East and West Towers in Makati City.