Real estate giant Ayala Land Inc. (ALI) registered a 34 percent growth in net incometo P8.1 billion in the first half of the year due to the improved operations of its various business segments.
In a disclosure to the Philippine Stock Exchange, the firm said it posted a net income of P4.9 billion in the second quarter of 2022, 51 percent higher year-on-year and up 55 percent versus the first quarter of 2022.
Consolidated revenues improved 9 percent to P53.3 billion in the first half with the second quarter revenues amounting to P28.7 billion, 18 percent better than the same period last year and 17 percent more than the first quarter of 2022.
“Strong mall and hotel recovery, resilient office leasing operations, and solid demand for commercial lots led our performance in the first half of 2022,” said ALI President and CEO Bernard Vincent O. Dy.
He noted that, “The increased economic activity has enabled our various business segments to generate quarter-on-quarter improvements and support the growth of our diversified real-estate portfolio.”
“We look forward to sustaining our recovery for the rest of the year, anchored on the country’s stable fundamentals and new socio-economic agenda,” Dy added.
ALI recorded property development revenues of P34.1 billion as solid commercial lot sales cushioned lower residential bookings. It reached P18.3 billion in the second quarter, a 2 percent improvement from the same period last year but 15 percent higher when compared to the results of the first quarter of 2022.
Residential revenues declined by 9 percent to P27.4 billion due to stretched payment terms arising from the challenges of the pandemic.
Office-for-sale revenues were 28 percent lower at P1.5 billion due to limited inventory. Meanwhile, revenues from commercial lots more than doubled at 166 percent to P5.3 billion on strong demand at Arca South, Nuvali, and Vermosa.
Residential sales reservations totaled P49.3 billion, a 2 percent increase from last year. Second quarter sales improved as ALI generated P25.2 billion, 28 percent higher than last year and 5 percent more than the first quarter of 2022.
ALI launched 12 projects worth P34.9 billion in the first half, with five projects valued at P17.9 billion offered to the market in the second quarter.
Commercial leasing generated revenues of P14.6 billion, a 54 percent recovery from a year ago, driven by higher mobility. ALI posted P8.1 billion in the second quarter, up 87 percent from the same period last year and 26 percent higher than the previous quarter.
In the first half, shopping center revenues doubled to P6.9 billion due to higher rent and tenant sales, while office leasing revenues increased by 12 percent to P5.4 billion owing to the contribution from newly completed offices.
Meanwhile, hotel and resort revenues grew 91 percent to P2.3 billion from increased guest patronage and higher room rates due to the resurgence of domestic tourism.
ALI is set to launch two master-planned estates in the country within the second half of this year to increase its presence in strategic growth areas. From these launches, ALI hopes to meet the increasing market demand for real estate products.