MANILA -Property giant Ayala Land Inc. closed the first semester of the year with robust earnings, defying earlier concerns of a slowdown given the high interest rate environment.
Ayala Land, part of the Zobel family conglomerate Ayala Corp., said net income from January to June jumped 41 percent to P11.4 billion versus the same period in 2022, a statement on Wednesday showed.
“Our notable performance in the first half of 2023 reflects the sustained resilience of the property market and strong consumer activity in the geographic areas where we operate,” company president and CEO Bernard Vincent O. Dy said in the statement.
The builder said total revenues during the first six months of the year grew by 24 percent to P6 billion.
Sales growth remained healthy as residential reservation revenues expanded by 18 percent to P58.3 billion during the period.
“Leveraging the positive momentum of the economy, we will capitalize on market opportunities to enhance our diversified portfolio throughout the rest of the year,” Dy said.
Ayala Land said overall property development revenues increased 13 percent to P38.7 billion as it ramped up the completion of residential projects apart from sales of commercial and industrial lots and office units.
Residential revenues alone grew 14 percent to P31.2 billion. Sales were driven by Alveo’s Park East Place in BGC, AyalaLand Premier’s Ciela in Carmona, Cavite, Arcilo in Nuvali, Laguna, and Parklinks South Tower in Quezon City, and Avida Towers Makati Southpoint.
A total of P31.9 billion worth of residential projects were launched during the first semester of 2023.
Commercial leasing revenues also grew by 39 percent to P20.2 billion amid higher occupancy and leasing rates.
The recovery of malls continued in the first half as shopping center revenues hit P10.2 billion, up 49 percent. Office leasing earnings also increased by 8 percent to P5.8 billion while hotel and resort revenues surged 79 percent to P4.2 billion.
Meanwhile, the property giant said it spent P38.7 billion in capital expenditures during the first half, which was about 45 percent of the full-year budget of P85 billion.
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