Real estate giant Ayala Land Inc. (ALI) posted a 34 percent jump in consolidated net income to P6 billion in the first half of the year as revenued rose 19 percent to P49 billion.
In a disclosure to the Philippine Stock Exchange, the firm said it saw significant improvements in performance compared to the first half of 2020 during the onset of the pandemic.
In the second quarter alone, revenues and net income reached P24.3 billion and P3.3 billion, up 90 percent and 16.6 times from the same period last year, respectively.
ALI’s property development revenues grew 37 percent to P34.1 billion for the period, propelled by construction progress as well as higher sales bookings.
Sales reservations in the second quarter totaled P19.7 billion, a substantial growth of 45 percent from the same period last year, as local demand remained strong despite the reimposition of ECQ from March until April.
This brought first half sales reservations to P48.2 billion, up 26 percent from last year.
“The pandemic continues to provide an extremely challenging environment for majority of our business lines,” said ALI President and CEO Bernard Vincent O. Dy.
He noted that, “Improvement in our performance in the first half of the year was driven primarily by our property development business, with residential demand showing resilience and construction progress driving revenue recognition.”
“While it may take some time for our economy to fully reopen, particularly with the reimposition of ECQ in NCR, we are proactively launching new projects and ensuring we have adequate inventory to serve market segments that are demonstrating stability,” Dy added.
Ayala Land has budgeted P100 billion worth of residential launches in 2021. In the first half, it launched 14 projects with a total value of P44.3 billion.
Commercial leasing revenues were weighed down by renewed restrictions with revenues declining 26 percent to P9.5 billion in the first half of 2021.
Shopping center revenues likewise dipped 43 percent to P3.4 billion reflecting limited operations and ongoing rent discounts to support tenants.
Office leasing revenues totaled P4.8 billion, a very slight improvement from last year as business process outsourcing and HQ operations cushioned the impact of POGO cancellations.
Revenues from hotels and resorts meanwhile ended 42 percent lower to P1.2 billion as resort operations were restricted from the end of March until April.