ALI net income rises 21% in 2017 to billion

Real estate giant Ayala Land, Inc. (ALI) reported a strong 21 percent growth in net income to R25.3 billion in 2017, driven by its healthy topline and robust operations.

In a disclosure to the Philippine Stock Exchange, the firm said its total revenues grew 14 percent to R142.3 billion, backed by substantial bookings and completion of its property development projects and expanding leasing business.

Supporting its healthy topline was the resurgence of property sales in 2017, recording higher growth of 13 percent to R122.0 billion, a big jump from the 3 percent growth in 2016.

The fourth quarter of 2017 was also robust with a 17 percent growth in property sales as ALI accelerated its launches during the last quarter, ending 2017 with a total of R88.8 billion worth of residential and office condominium developments.

This was complemented by the growing leasing revenues which increased by 10 percent to R31.0 billion as the new malls, offices, and hotels and resorts grow in contribution.

“We are pleased with our, 2017 business results. All major product lines posted strong growth, with property sales coming in at the higher end of our estimates and leasing income increasing in line with our planned asset build up,” said ALI President and CEO Bernard Vincent O. Dy.

He added that, “we continue to expand our estates and land bank around the country – putting us in a good position to continue to benefit from the strong performance of our economy.”

The year, 2017 was also a landmark year as ALI completed the most number of projects which helped expand its leasing capability.

The company opened five malls with a combined gross leasable area (GLA) of 189,000 sqm, bringing the company’s shopping center GLA to 1.8 million sqm. Revenues from the malls reached R17.7 billion, 10 percent higher than in 2016.

Also, Ayala Land completed six office buildings with a total GLA of 185,000 sqm, strengthening its hold in the office market segment, bringing the company’s total office GLA to 1.02 million sqm in 2017. Revenues from office leasing amounted to R6.7 billion, 12 percent higher than 2016.