Ayala Land 2011 net income hits all-time at P7-B

MANILA, Philippines – Ayala Land Inc. realized a P7.14 billion net income in 2011, an all-time high for one of the country’s biggest real estate firms.

This 31% increase against the P5.46 billion income in 2010 was attributed to robust growth in revenues from residential, retail and office leases.

Consolidated revenues reached 44.21 billion, a 17% increase.

Below is the breakdown of revenues in 2011.

“We had another banner year in 2011, thanks to the strong revenue growth and margin improvements achieved by our key businesses…We remain well positioned to pursue our growth moving forward and achieving the goals we set out to do under our 5-10-15 plan,” Ayala Land president Antonio Aquino said in a statement on Wednesday, February 15.

Residential units

Sale of residential units accounted for 54% of total revenues.

The company launched 20,613 units in 2011 and is scheduled to launch about 24,80 units across all residential brands in 2012.

Ayala Land expects robust demand for residential products to continue this 2012 as it launches about 24,800 units across its residential brands Ayala Land Premiere, Alveo, Avida, Amaia and Buena Vita.

Shopping centers

Average occupancy rate accorss all malls reached 96% in 2011.

Despite the closure of some aspects in core Glorietta mall in Makati in early 2011, the opening of new malls in Davao and Makati and the improvements in the occupancy of malls in Taguig and Pampanga made up for it.

“The retail environment remain buoyant as same-store sales for all building and land leases increased by 5% and 3% respectively,” it said.

Revenues from Ayala Land’s hotels and resorts business rose by 18% to P2.24 billion in 2011, largely due to the impact of the consolidation of the El Nido Resorts operations in Palawan, through the acquisition of a 60% stake in the Ten Knots Group in April 2010.

Capex for 2012

Ayala Land also announced a record capital expenditure for 2012.

In a statement, Jaime Ysmael, ALI chief financial officer, said it has earmarked P37 billion for its capex this year, 23.33% higher than the nearly P30 billion spent last year, to fund “the completion of ongoing developments, new residential and leasing project launches, and new land bank acquisitions.”
 
“We were successful in launching a record number of projects last year, 67 in all, and we plan to launch about the same number of projects this year but 29% higher in value and 20% more in the number of units,” said Antonino Aquino, Ayala Land president.