Ayala Land net income up 18% in 1st 9 months
MANILA, Philippines – Ayala Land Incorporated (ALI), the property development arm of the Ayala Group, saw its bottom line for the 1st 3 quarters of the year rise by 18% due to better than expected property sales.
In a disclosure to the Philippine Stock Exchange (PSE) on Tuesday, November 7, ALI reported a net income of P17.8 billion for the January to September period.
This was as consolidated revenues hit P98.9 billion, 16% higher compared to the P85.49 billion in the same period in 2016.
"We have seen a marked increase in our residential property sales in the 1st 3 quarters of 2017. Together with the continued buildup of our leasing assets, this has led to a strong top and bottom line growth for the company," said ALI president and chief executive officer Bernard Vincent Dy in a statement.
ALI said property sales in the 1st 9 months of the year exceeded its planned target levels, reaching P94.2 billion, 12% higher than the P84.32 billion in the same period last year.
Combined revenues from shopping centers, offices, hotels, and resorts grew by 10% to P21.1 billion, driven by the expansion of its commercial business.
Total revenues from property development, including the sale of residential lots and units, office spaces, as well as commercial and industrial lots, amounted to P68.4 billion in the 1st 9 months of the year, 30% higher than the P52.6 billion during the same period in 2016.
ALI launched P53.9 billion worth of residential and office for sale projects for the period.
Its recurring income business also rose, with its malls posting revenues of P11.8 billion and its total gross leasable area (GLA) increasing to 1.70 million square meters (sqm).
ALI recently opened Ayala Malls Cloverleaf, Ayala Malls The 30th, and Ayala Malls Vertis North. Two more shopping centers – Ayala Malls Feliz and Ayala Malls Marikina – will open within the year.
Leasing of office space brought revenues of P4.47 billion, with GLA growth reaching a total of 909,000 sqm as ALI completed Circuit BPO Tower 2 and The 30th Corporate Center. It also plans to complete Vertis North BPO Tower 2 and Circuit BPO Tower 1 this year.
The developer's hotel arm, meanwhile, brought in revenues of P4.83 billion, with an increase in its number of rooms to 2,509 from 2,477 for the period. It also plans to open the 154-room Seda Capitol Central in Bacolod and 20-room Hotel Covo in Palawan this year.
ALI said it had spent a total of P63.2 billion for project and capital expenditures by the end of September this year, with 49% spent on the completion of residential projects and 28% spent on commercial leasing projects.
Another 17% was set aside for land acquisition, new businesses, services, and other investments, while 6% was spent on the development of its estates. – Rappler.com