ALI earns ₱3.2 B in Q1; eyes sale of ₱100-billion new homes
Ayala Land Inc. (ALI) reported a 14 percent improvement in net income to ₱3.2 billion in the first quarter of 2022 from ₱2.78 billion in the same period last year, supported by continuing costefficiency measures amidst the pandemic.
In a disclosure to the Philippine Stock Exchange, the firm said consolidated revenues was flat at ₱24.6 billion, reflecting the slight contraction in property development and the resurgence in commercial leasing during the first quarter of this year.
Factoring out the sale of its stake in Qualimed to Ayala Corporation in the first quarter of 2021, revenues and net income grew 6 percent and 77 percent, respectively.
"The greater mobility in the first quarter resulted in an immediate positive impact on our overall business. Notable was the turnaround and higher customer patronage of our malls, hotels, and resorts," said ALI President and CEO Bernard Vincent O. Dy.
He added that, "We expect the positive trend to continue as the health crisis abates, people increasingly return to their pre-pandemic consumption patterns, and business and leisure travel gain momentum."
Capital expenditures reached ₱14.0 billion in the first quarter of 2022, mainly for residential developments, followed by commercial leasing assets.
About 54 percent was spent on residential projects, 7 percent on commercial projects, 14 percent on land acquisition, 23 percent on estate development, and 2 percent on other purposes.
ALI remains confident in the market and is poised to launch ₱100 billion worth of residential inventory this year, equally split between horizontal and vertical offerings.
The Company is set to introduce four master-planned estates in the country to increase its presence, add new products for communities and businesses, and support the economy's reopening.
Property development revenues reached ₱15.9 billion in the first quarter of 2022, a 2 percent dip from ₱16.2 billion in the same period last year. ALI received a strong take-up for commercial lots but recorded lower residential bookings during the quarter.
Sales reservations totaled ₱24.1 billion which is equivalent to monthly average sales of ₱8.0 billion, higher than ₱7.7 billion in 2021. The firstquarter sales take-up is also 9 percent more than ₱22.1 billion in the fourth quarter of 2021.
Ayala Land launched seven projects with a total value of ₱17.0 billion in the first quarter of 2022. These were in Carmona, Cavite; Morong, Bataan; Nuvali, Laguna; Pasay City; Tagaytay City, Cavite; and Iloilo.
Commercial leasing revenues totaled ₱6.4 billion, up 26 percent from ₱5.1 billion, as it benefitted from the reopening of the economy.
Revenues from shopping centers accelerated 49 percent to ₱2.9 billion from ₱2.1 billion due to higher mobility and tenant sales as the country transitioned to less strict quarantine restrictions.
Office leasing revenues grew by 7 percent to ₱2.7 billion from ₱2.5 billion as tenancy and operations remained stable.
Meanwhile, hotel and resort revenues improved 29 percent to ₱823.4 million from ₱640.4 million because of increased domestic travel and higher room rates.