Ayala Land Inc. (ALI) reported that its consolidated net income fell 73 percent drop to P6.4 billion the first nine months of 2020 as consolidated revenues for the period dropped 48 percent to P63.3 billion.
In a disclosure to the Philippine Stock Exchange, ALI said the weaker performance was due to the impact of the COVID-19 pandemic on its business operations.
The company noted though that it saw improvement between the second and third quarters of the year as it registered a 73 percent jump in revenues to P22.1 billion.
Net income in the third quarter also reached P1.8 billion, a substantial advancement of almost nine-fold compared to the second quarter as government restrictions started to ease.
“COVID-19 continues to significantly affect our operations and the performance of our company. We’ve
seen, however, improvement in majority of our business lines in the third quarter as pandemic-related restrictions gradually eased,” said ALI President and CEO Bernard Vincent O. Dy.
He added that, “We anticipate favorable developments moving forward as the reopening of the economy gains traction and have started to introduce new product inventory in our estates.”
Revenues from property development amounted to P40.6 billion, a 52 percent drop due to lower project bookings and limited construction activity. With the resumption of construction activities, property development revenues more than doubled to P15.7 billion in the third quarter from P7.6 billion in the second quarter.
Residential sales reservations in the first nine months of 2020 amounted to P60.8 billion, 56 percent of last year’s levels despite the limited selling activity during the quarantine periods.
Notwithstanding the challenging environment, reservations in the third quarter reached P22.5 billion, a 66 percent improvement from the previous quarter as demand for residential products picked up.
Commercial leasing revenues also decreased by 37 percent to P17.3 billion given restricted mall and hotel operations and the temporary closure of resorts during the period.
In the third quarter however, mall revenues started to rebound, increasing 29 percent from the second quarter to P1.5 billion as restrictions eased resulting in a higher foot traffic of 30 to 35 percent of pre-COVID levels.
The company likewise moved closer to a return to normalcy by launching three sequel projects with a total value of P2.2 billion in the third quarter of 2020.
It reported that these launches saw a significant take-up in spite of the limitations of the quarantine period.