Ayala Land posts 28% jump in first-half profit

MANILA, Philippines–Ayala Land Inc. grew its first-semester net profit by 28 percent year-on-year to P4.33 billion, tracking market consensus outlook for this year, as all business segments performed strongly while operating margins improved.

Consolidated revenues for the first half reached P25.02 billion, 18-percent higher than the level a year ago. Revenues from real estate and hotels, which comprised the bulk of consolidated revenues, increased by 19 percent to P23.82 billion, with all business lines contributing to revenue expansion, the company disclosed to the Philippine Stock Exchange yesterday.

Net income margin improved to 17 percent in the first six months of 2012 from 16 percent in the same period last year despite stiff competition among real estate developers.

“We continued to post solid results in the first half of 2012 as we sustained our high growth trajectory,” said ALI chief finance officer Jaime Ysmael. “Across the board, we have been consistent in growing revenues and improving margins. Our first-half average monthly sales take-up for residential products was again a new record, and our commercial leasing and hotels and resorts businesses continue to perform very well,” Ysmael said.

He said ALI was on track to achieving its targets for the year.

Property development, which included the sale of residential units as well as the sale of commercial and industrial lots, contributed revenues of P15.31 billion in the first six months, 24-percent higher than the level in the same period last year.

Six-month revenues from the residential segment reached P13.95 billion, up 24 year-on-year. This was driven by a 57-percent improvement in the value of bookings across the residential brands. Flagship Ayala Land Premier posted a revenue growth of 23 percent year-on-year to P5.11 billion, which was attributed to the strong sales of Elaro lots in Nuvali as well as the steady completion and significant bookings from the condominium units in Park Terraces 3 in Makati City and One Serendra West Tower in Bonifacio Global City.

As an indicator of future growth, sales take-up value for the first six months of the year reached P39.08 billion, equivalent to an average monthly sales take-up of P6.51 billion. This was 51-percent higher than the P4.31 billion average monthly sales take-up achieved for the whole of 2011.

The company’s four residential brands launched 9,205 units in the first half of 2012, with the programmed schedule of launches for the rest of the year remaining on track.

Six-month revenues from the sale of commercial and industrial lots reached P1.35 billion, 29-percent higher than the same period last year, largely due to the sale of 14 commercial lots and a parcel of raw land in Nuvali and three industrial lots in Laguna Technopark.

Commercial Leasing, made up of ALI’s shopping center and office leasing operations, posted P4.23 billion in revenues during the first six months, 21-percent higher than the level in the same period last year.

Shopping centers alone grew 21 percent to P2.81 billion, driven by higher lease rates and the increase in occupied space. Same-store sales increased by 6 percent and 9 percent for building and land leases, respectively, buoyed by the strong retail environment.

Revenues from office leasing operations increased 20 percent to P1.41 billion for the first six months from P1.18 billion in the same period last year, driven mainly by a 19-percent jump in occupied gross leasable area (equivalent to 55,000 square meters) for business process outsourcing (BPO) office spaces.