Ayala Land profit up 42% as stable property sector bolsters operations
MANILA -The Zobel family’s property giant Ayala Land Inc. is looking to sustain its growth momentum this year after the strong performance of its core segments pushed up first quarter profit by 42 percent to P4.5 billion.
Overall revenue from January to March also climbed 26 percent to P30.9 billion, the developer said in a statement on Friday.
“Our results in the first quarter of 2023 set a solid foundation for our continued growth and we look forward to building on this momentum as the year progresses. All our business lines showed progress, demonstrating market stability in the property sector,” Ayala Land president and CEO Bernard Vincent Dy said.
The builder continued to expand as first quarter capital spending reached P19.5 billion, nearly a quarter of its full-year budget of P85 billion. Bulk of the spending was allocated to its residential projects and estate development.
Strong demand for homes pushed up reservation sales, an indicator of future revenues, by 15 percent to P27.7 billion during the quarter.
“We remain optimistic about the sustained expansion of our businesses this year, fueled by supportive economic drivers and the strength of the Philippine economy,” Dy said.
Ayala Land said property development revenues during the first quarter climbed 8 percent to P17.1 billion. Residential revenues reached P14.2 billion, up 10 percent, while office-for-sale revenues grew 43 percent. Commercial and industrial lot sales declined by 19 percent to P1.8 billion.
Moreover, total commercial leasing revenues jumped 57 percent to P10.1 billion.
Mall revenues surged 71 percent to P5 billion while office leasing income added 8 percent to P2.9 billion. Hotel and resort revenues soared 164 percent to P2.2 billion “as occupancy and room rates rose due to the increase in local and foreign travelers.”
Ayala Land said debts were well-managed as it ended the quarter with a net gearing (or debt-to-equity) ratio of 0.77:1 “ensuring the company maintains the highest investment-grade rating in the domestic debt market.”INQ