Core businesses lift Ayala Land’s net income

MANILA, Philippines – Property giant Ayala Land Incorporated chalked up a net income of P15.06 billion in the first 9 months of the year, up 17% from the same period last year on double-digit growth in revenues from core businesses.

Ayala Land told the Philippine Stock Exchange on Monday, November 7, that its consolidated revenues from January to September 2016 reached P85.49 billion, an increase of 14% versus the P75.05 billion it posted in 2015.

The increase is driven by the sustained growth of its residential and office businesses, and the strong performance of its shopping centers. 

“Our financial results continue to be positive and reflective of a buoyant real estate industry,” Ayala Land president and chief executive officer Bernard Vincent Dy said in the disclosure.

“New products introduced in our various estates in 2016 have started to contribute to our performance and are expected to help sustain our growth moving forward,” Dy added.

Sales from residential and office-for-sale projects reached a total of P84.32 billion during the period, 2% higher year-on-year, equivalent to an average monthly sales take-up of P9.36 billion.

The property firm launched a total of P49.2-billion worth of residential and office-for-sale projects in the past 9 months of 2016.

Ayala Land has been focused on expanding its property offerings within its current roster of 19 integrated mixed-use developments nationwide.

In Makati, the company started developing One Ayala, a mixed-use complex with a first-of-its-kind intermodal transport hub at the corner of Ayala Avenue and EDSA.

New projects launched

One Ayala includes a 300-unit condominium-for-lease tower. A flagship 600-room Seda hotel will also be built around the transport hub.

New projects were also launched at Circuit Makati; Bonifacio Global City and Arca South in Taguig City; Vertis North in Quezon City; Nuvali in Laguna; and Vermosa in Cavite.

Development is underway for the 17.5-hectare Gatewalk Central in Mandaue City, Cebu, while new projects are also being constructed at Cebu IT Park, Capitol Central in Bacolod, and Atria Park District in Iloilo.

The company’s first eco-tourism estate, Lio in El Nido, Palawan, is also slated to open a 42-room hotel this December.

“The simultaneous development and constant enhancement of our estates provide an opportunity to unlock land values and add to economic activity in key locations in the country,” Dy said.

“We constantly work towards building an environment that enables businesses to grow and generate jobs,” he added.

The company’s commercial leasing business grew by 12% to P19.17 billion in the first 9 months of the year, from P17.18 billion in the previous year, fueled by the simultaneous expansion of its malls, offices, as well as hotels and resorts portfolios.

In line with the company’s thrust of building up its recurring-income business, Ayala Land recently unveiled enhancements of the Tutuban Center, after it acquired majority interest in Prime Orion Philippines, Incorporated in February this year. 

This venture adds 50,000 square meters of gross leasable area to ALI’s shopping center portfolio. Renovation work included the restoration of the heritage building where the original train station, built in the 1800s, first stood.

The first 3 quarters of 2016 also saw ALI launching Ayala Malls Legazpi, its first shopping center in the Bicol Region.

As of end-September the company has spent P63.9 billion in capital expenditures, of which 40% and 27% were spent on completing residential and commercial leasing projects, respectively. – Rappler.com