By James A. Loyola
Real estate giant Ayala Land, Inc. (ALI) reported a 12 percent hike in net income to P15.2 billion in the first six months of 2019 as total revenues increased 4 percent to P83.2 billion during the period.
In a disclosure to the Philippine Stock Exchange, the firm said “this was driven by the sustained growth of ALI’s property development business led by office sales, complemented by the strong topline growth of its commercial leasing businesses.”
It added that, “The positive macroeconomic environment in the first half of the year provided the growth platform for the company.”
ALI said its extensive portfolio has allowed it to maximize the demand for residential, office and commercial properties, generating real estate revenues of P81.9 billion.
Property development revenues amounted to P58.9 billion as supported by the office for sale segment which grew more than two-fold to P10.1 billion and commercial and industrial lot sales which increased by 11 percent to P4.3 billion.
Meanwhile, commercial leasing revenues jumped 16 percent to P18.6 billion from the same period in the previous year.
“We continue to benefit from the strong economic growth of the country,” said ALI President and CEO Bernard Vincent O. Dy.
He noted that, “Results from our various business lines continue to be good, with notable performances in our leasing portfolio and the sales of office condominiums and commercial lots.”
Dy added that, “Moving forward, we remain positive on demand across all market segments and plan to increase the level of product introduction in the second half of the year.”
The company’s capital expenditures reached P49.5 billion in the first half of the year to sustain its residential and leasing asset buildup. Residential revenues registered at P44.5 billion, 11 percent lower than the previous year mainly due to the full sell out and completion of successful projects by ALP and ALVEO.
Sales reservations remained steady at P72.3 billion as local Filipinos continued to drive demand, comprising 70 percent of the total buyers.
This was supplemented by sales from overseas Filipinos comprising 13 percent while sales from other nationalities amounted to 17 percent.
A total of 13 projects valued at P19.5 billion went to market in the first half of 2019.
The company plans to ramp up launches in the second half with a bulk of the projects to be launched within the last two quarters of the year.
For ALI’s commercial leasing business, shopping centers revenues grew 12 percent to P10.3 billion, supported by same mall revenue growth of 11 percent .
Office leasing revenues also surged 25 percent, reaching P4.6 billion as newly-opened offices in Ayala North Exchange, Vertis North and Circuit Makati gained further traction.
The hotels and resorts segment on the other hand, saw a 17 percent surge in revenues to P3.7 billion, due to strong patronage of Seda Ayala Center Cebu, and Lio.