By James A. Loyola
Real estate giant Ayala Land, Inc. (ALI) reported a 12 improvement in net income to ₱23.2 billion for the first nine months of 2019 as total revenues increased by 2 percent to ₱121.7 billion for the period.
In a disclosure to the Philippine Stock Exchange, the firm said “growth was driven primarily by real estate revenues which stood at ₱119.7 billion, supported by office, commercial and industrial lot sales and further boosted by the improving performance of new leasing assets.”
ALI launched ₱37.8 billion worth of residential projects in the third quarter alone, bringing total launches for the first nine months of the year to ₱57.3 billion.
Capital expenditures reached ₱78.2 billion for the period supporting continued residential and leasing asset build-up with the malls and offices segments expanding their gross leasable area (GLA) further to 2.1 million and 1.2 million square meters, respectively.
“Third quarter financial results were in line with our expectations, following a similar pattern to what we have seen in the first half of the year,” said ALI President and CEO Bernard Vincent Dy.
He noted that, “we launched more developments during the period, which we anticipate will help us finish strong in 2019 and provide positive momentum in 2020.”
Dy added that, “commercial leasing assets, on the other hand, continue to outperform as business and consumer activity remain robust, and as more completed assets over the last couple of years stabilize and experience high occupancy rates.”
ALI’s property development revenues amounted to ₱85.4 billion with contributions from a 51 percent growth in office for sale revenues to ₱11.1 billion, and a 16 percent increase in sales of commercial and industrial lots to ₱6.5 billion.
Sales reservations remained steady at ₱108.5 billion, fueled by the growth in sales reservations of Alveo and Avida projects.