Ayala Land net income up 18% to P11.5B in 1st half of 2017

MANILA, Philippines – Ayala Land Incorporated (ALI), the property arm of Ayala Corporation, saw its bottom line increase by 18% in the 1st half of this year, driven by residential sales and leasing.

In a disclosure to the Philippine Stock Exchange (PSE) on Monday, August 7, ALI said its net earnings hit P11.5 billion for the 1st half of 2017, compared to the P9.74 billion it posted in the same period in 2016.

The firm’s consolidated revenues reached P64.5 billion, 18% higher compared to P54.8 billion in the previous year, while revenues from real estate increased 18% to P60.5 billion.

More than half of ALI revenues came from property development, which includes the sale of residential lots and units, office spaces, as well as commercial and industrial lots. 

Property sales in the 1st half of 2017 reached P61.4 billion, 11% higher than the P55.1 billion in the same period last year, with an average monthly sale of P10.2 billion.

Total revenues from property development amounted to P44.3 billion, 32% higher than P33.7 billion in the same period in 2016, while total revenues from commercial leasing amounted to P14.17 billion, 11% higher than P12.76 billion last year. 

“We’ve seen residential sales pick up in 2017, after a few years of relatively flat growth. Given our pipeline of launches for the balance of 2017, we remain positive that we can sustain the growth in the 2nd half of the year. At the same time, our leasing business continues on its steady upward trajectory given the increasing contribution of our new shopping centers, offices, and hotels,” said ALI president and chief executive officer Bernard Vincent Dy in the disclosure.

During the 1st half of the year, the company launched the 200-hectare Evo City in Kawit, Cavite, which is envisioned to become a new central business district.

ALI also opened a mall and its largest Seda hotel in Vertis North in Quezon City. It also launched Ayala Land Premier’s Cerilo, an 85-hectare upscale residential community in its flagship sustainable estate Nuvali in Laguna.

ALI has spent a total of P41.6 billion for project and capital expenditures as of June 2017, with 48% spent on the completion of residential projects and 33% spent on commercial leasing projects. A further 12% was spent on land acquisition, new businesses, services, and other investments, while 7% was spent on the development of its estates.

In July, ALI issued and listed in the Philippine Dealing and Exchange Corporation (PDEx) short dated notes worth P4.3 billion, due in 2019 and carrying a fixed coupon rate of 2.75%, to partially finance capital expenditures. – Rappler.com