ALI profit up 19% to P8.4 B

Ayala Land Inc., the property development arm of the Ayala Group, reported a net income of P8.39 billion in the first six months of the year, 19 percent higher than the P7.05 billion recorded in the same period a year earlier.

Consolidated revenues went up 10 percent to P50.61 billion.

“We are pleased with our first half results and attribute gains to the consistent contributions of our different business units. Development continues in all our estates, with products in residential, shopping centers, offices and hotels on the rise. We are on track relative to our annual target and we plan to sustain the momentum with new launches in the coming months,” ALI president and CEO Bernard Vincent Dy said.

Property development, which includes the sale of residential lots and units, and office spaces, as well as commercial and industrial lots, posted revenues of P31.85 billion, nine percent higher than the previous year’s P29.3 billion.

Commercial leasing, on the other hand, which covers the operation of shopping centers, offices, and hotels and resorts, generated total revenues of P11.4 billion, 10 percent more than the P10.36 billion reported in the same period a year ago.

ALI’s wholly-owned construction and property management units registered combined revenues of P19.9 billion, 37 percent higher than the P14.57 billion a year earlier.

“Building large scale mixed-use developments that are strategically located in the country’s emerging growth centers will continue to be our focus. Our residential brands continue to introduce new offerings within our estates. In our commercial business, we recently opened Ayala Malls’ Solenad 3 at Nuvali as well as our very first Merkado supermarket at the UP Town Center. In all these developments, we are pleased with the build-up of economic activity, creating new opportunities and employment for many people,” Dy said.

During the first half, ALI launched P54.85 billion worth of residential projects. Reservation sales reached P52.47 billion, up eight percent year on year.

Revenues from the residential segment reached P26.93 billion, 10 percent higher than the year before due to sustained bookings and project completion across all residential brands.

Upscale residential subsidiary Ayala Land Premier turned in revenues of P10.82 billion, an increase of 16 percent from P9.3 billion.

Alveo contributed revenues of P6.9 billion or 22 percent more than the previous year’s contribution.

Avida, meanwhile, reported a 14 percent hike in revenues to P6.6 billion

Steady sales of office spaces by Alveo and Avida in Bonifacio Global City, as well as commercial and industrial lots, especially at Arca South in Taguig, also contributed to total revenues.

Shopping centers contributed P6.01 billion in revenues, nine percent higher year-on-year from P5.52 billion due to the increased contributions of Fairview Terraces, which opened in 2013, as well as the higher occupancy and average rental rates of existing malls.

Revenues from office leasing totaled P2.43 billion, up 16 percent due to the contribution of new offices and the higher occupancy and average rental rates of existing offices. Average occupancy rate increased to 92 percent from 91 percent.

The hotels and resorts business, meanwhile, registered revenues of P2.96 billion, 8 percent higher than the year ago figure of P2.75 billion due to improved revenue per available room performance of ALI’s internationally-branded hotels, its own SEDA hotels, and El Nido Resorts in Palawan.

The company has so far spent P41.1 billion in capital expenditures for project construction and land acquisition.