Ayala Land reports over P7 B in profits

MANILA, Philippines—Property giant Ayala Land Inc. grew its net profit last year by 31 percent to a record P7.14 billion on higher revenues across its residential, shopping center, office and hotel businesses alongside improved margins.

“We had another banner year in 2011, thanks to the strong revenue growth and margin improvements achieved by our key businesses,” ALI president Antonino Aquino said in a press statement on Wednesday.

“We were successful in launching a record number of projects last year, 67 in all, and we plan to launch about the same number of projects this year but 29 percent higher in value and 20 percent more in the number of units,” Aquino added.

Consolidated revenues rose by 17 percent to P44.21 billion, the bulk of which came from real estate and hotel earnings which increased by 16 percent to P41.23 billion.

Net income margin improved to 16 percent in 2011 from 14 percent in the previous year as ALI strictly controlled project costs and direct operating expenses.

“We spent a record high of about P30 billion for project and capital expenditures in 2011 as we aggressively pursued growth across our portfolio of products,” said ALI chief finance officer Jaime Ysmael, noting this was 49 percent more than the previous year and had mostly gone to residential development and some to land acquisition.

“For 2012, we have earmarked another P37 billion for capital expenditures largely for the completion of ongoing developments, new residential and leasing project launches, and new landbank acquisitions which will help sustain the company’s growth trajectory over the coming years,” Ysmael said.

Property development, which included the sale of residential units as well as the sale of commercial and industrial lots, posted revenues of P25.26 billion in 2011, 27 percent higher than the level a year ago. Revenues from the residential segment reached P23.99 billion for the year, 29 percent higher than the previous year, driven by the higher bookings and steady progress on construction across all residential brands.

Ayala Land Premier generated P9.51 billion in revenues, up 36 percent from a year ago while the contribution from Alveo and Avida brands likewise grew by 15 percent and 44 percent, respectively, to P5.83 billion and P6.06 billion while new residential brand Amaia generated P841 million largely from the full-year impact of its maiden project AmaiaScapes Laguna.

Sales take-up value in 2011 reached P51.72 billion, equivalent to an average monthly sales take-up of P4.31 billion and 56 percent higher than the average monthly sales take-up achieved the previous year.

The company’s four residential brands, together with fifth brand Bella Vita that caters to the socialized housing segment, launched a total of 20,613 units in 2011.

For 2012, ALI is expecting continued demand for residential products and will thus launch about 24,800 units across all residential brands.