Real estate giant Ayala Land Inc. (ALI) reported a 36 percent drop in net income to P2.8 billion in the first quarter of the year as it continued to weather the impact of the ongoing COVID-19 pandemic on its operations.

In a disclosure to the Philippine Stock Exchange, the firm said it registered a 13 percent decline in consolidated revenues to P24.6 billion, versus the first quarter of 2020, due to restrictions brought about by the pandemic. 

However, sales reservations rose 15 percent to P28.5 billion in the first quarter of 2021 from the P24.7 billion posted in the same period last year as local demand remained robust amid the community quarantines. This was likewise an increase of 35 percent from the fourth quarter of 2020.

“We continue to work through the difficulties of the pandemic with an eye towards full recovery in the next two to three years,” said ALI President and CEO Bernard Vincent O. Dy.

He noted that, “Our residential business registered higher sales in the first quarter versus a year ago with new product launches gaining favorable market acceptance.”

Dy said “Our commercial leasing businesses improved quarter-on-quarter but these are not expected to fully recover until mobility restrictions are eased.”

He added that, “Looking at our total portfolio, we expect our capital expenditures, product launches and completions to drive our performance this year amidst the ongoing challenges caused by the pandemic.”

The company’s property development revenues registered at P16.2 billion, a 6 percent dip from last year cushioned by higher bookings and construction progress but 37 percent lower than the fourth quarter of 2020.

Residential revenues were virtually unchanged year-on-year, ending the quarter at P13.6 billion compared to P13.8 billion in the first quarter of 2020.

Revenues from the sale of office units increased 85 percent to P1.8 billion from P962 million as a result of solid bookings from developments such as ALVEO’s Park Triangle at Bonifacio Global City and Ayala Land Premier’s One Vertis Plaza at Vertis North.

Meanwhile, revenues from the sale of commercial and industrial lots dropped by 67 percent to P818.4 million from P2.5 billion on slower take up at Vermosa and Alviera estates. 

Commercial leasing revenues contracted 41 prcent to P5.1 billion as operations of malls, hotels, and resorts remained restricted.

Shopping center revenues dropped 58 percent to P2.0 billion year-on-year on account of limited operations, discounted rental rates to support tenants, and low foot traffic.

Sustained BPO and HQ operations drove office leasing revenues to P2.5 billion, a 2 percent increase from the previous year.

Hotels and resorts revenues ended 60 percent lower to P640 million as hotel occupancy remains low while resorts were closed since the reimposition of the enhanced community quarantine in the end of March.

Compared to the fourth quarter of last year, commercial leasing revenues improved by 13 percent. Shopping center and office revenues grew 16 percent and 22p percent, respectively. Meanwhile, revenues from hotels and resorts were 19 percent lower.  Ayala Land launched six projects in the first quarter with a total value of P17.4 billion. The company has budgeted P100 billion worth of project launches for 2021.