Ayala Land nets P6.6B in 9 months

MANILA, Philippines—Local property giant Ayala Land Inc. grew its January-September net profit by 27 percent year on year to P6.62 billion as all major business segments improved margins and boosted revenues at a double-digit pace.

Consolidated revenues for the first nine months reached P39.01 billion, 20 percent higher than the level a year ago. Revenues from real estate and hotels, which constituted the bulk of consolidated revenues, went up by 20 percent to P36.89 billion.

Despite rising competition from other developers, ALI’s net income margin improved to 20 percent for the nine-month period versus 18 percent last year.

“We are midway into our 5-10-15 plan and we continue to progress very well, and this is reflected in our results over the first nine months of the year,” said ALI chief finance officer Jaime Ysmael. “Average monthly sales take-up remains very robust and margin improvement is steady for all business lines. We’ve spent 94 percent of our programmed capital expenditures for projects this year and we are looking forward to upcoming launches before the yearend. By all indications, 2012 is looking like another good year for Ayala Land.”

Revenues from the residential development segment amounted to P22.32 billion, 27 percent higher than the same period last year, driven by strong sales and continued construction of projects across all residential brands. Ayala Land Premier (ALP), the company’s upscale brand, recorded a revenue growth of 10 percent year on year to P8.07 billion due to the strong sales of Elaro lots in NUVALI and Anvaya lots in Bataan.

Alveo’s revenues reached P5.2 billion, steered by the first towers of The Maridien in Bonifacio Global City, Solinea in Cebu and phase one of Kasa Luntian in Tagaytay City. Avida and Amaia likewise posted revenue growth of 65 percent and 109 percent to P6.1 billion and P1.01 billion, respectively, with booking contributions from new projects such as Avida Towers Centera, Avida Towers 34th Street, Avida Parkway Settings NUVALI and Bacolod as well as new projects launched in Cavite, Lipa, Novaliches, Cubao, Sta. Mesa and Avenida.

As an indicator of future growth in residential revenues, sales take-up value for the first nine months of the year reached P57.85 billion, equivalent to an average monthly sales take-up of P6.43 billion. This was 49 percent higher than the average monthly sales take-up achieved for the same period last year. The company’s four residential brands launched a total of 13,057 units in the first nine months, on track with full-year targets.

Other business segments performed as follows in the nine-month period:

Revenues from the sale of commercial and industrial lots went up by 26 percent to P1.59 billion, mainly due to the sale of 18 commercial lots in NUVALI, and seven commercial lots in Bonifacio Global City .

Total revenues for commercial leasing, which includes shopping center and office leasing operations, surged by 19 percent to to P6.34 billion. Revenues from shopping centers alone rose by 19 percent to P4.18 billion, marked by higher lease rates and increase in occupied space with the opening of Harbor point in Subic.

Revenues from office leasing operations increased by 19 percent to P2.17 billion on higher lease rates and occupied gross leasable area for business process outsourcing (BPO) office spaces, which increased by 16 percent.

Revenues of the hotels and resorts segment, which currently operates 634 branded hotel rooms between Hotel InterContinental Manila and Cebu City Marriott, and 150 island resort rooms in Lagen, Miniloc and Apulit Island (formerly Club Noah) in the province of Palawan, improved by 11 percent to P1.81 billion largely due to better revenue per available room and higher occupancy rates.