Ayala Land income up 15% on robust residential sales

Record-high revenues amid strong demand from customers buoyed property giant Ayala Land Inc.’s (ALI) earnings in the first six months of the year by 15 percent to P13.1 billion.

Total revenues at the Zobel family-led company expanded by 28 percent to a record P84.3 billion as the property development segment surged by more than a third to P51.9 billion.

Residential revenues soared by 40 percent to P43.7 billion, while revenues from commercial and industrial lots jumped by a fifth to P6.3 billion.

“Residential sales outperformed expectations. We will continue to pursue our growth trajectory with a keen eye on capital efficiency,” ALI president and CEO Anna Ma. Margarita Bautista-Dy said in a statement on Wednesday.

Residential reservation sales in the January to June period rose by 17 percent to P68.4 billion, driven by high second-quarter sales of P35 billion, up by 15 percent.

ALI has so far launched P33.7 billion worth of projects this year, 92 percent of which were from premium brands Ayala Land Premier and Alveo Land.

More than half were horizontal developments in the provinces.

According to Dy, more than 70 percent of its remaining project launches for the year would still be under either Ayala Land Premier or Alveo Land.

Leasing and hospitality revenues rose by 10 percent to P22.1 billion on higher occupancy rate in Ayala Malls Manila Bay.

Shopping center revenues rose by 8 percent to P11.1 billion, while office leasing inched up by 6 percent to P6.1 billion.

Hotel and resort revenues reached P5 billion, up by 19 percent.

The service business—construction, property management and airlines—saw a 51-percent growth in revenues to P8.4 billion.

According to ALI, it has so far spent P36.5 billion in capital, with the biggest chunk allocated for residential projects. Estate development got a 27-percent share; commercial leasing assets, 11 percent; and land acquisition commitments, 11 percent.

“We are reinventing our assets to deliver elevated and differentiated experiences to our customers, and we will continue to bring compelling and market-shaping residential offerings to Filipino homeowners,” Dy said. —Meg J. Adonis