AYALA LAND, Inc. (ALI) saw its net income rise 12% in the first three months, driven by higher residential sales and strong commercial leasing revenues.
The listed property developer said in a statement Tuesday that net income reached P7.3 billion in the first quarter, after total revenues went up by seven percent to P39.7 billion.
“We continue to experience consistent growth in all our business lines. Notable was the strength of our commercial portfolio as the asset build-up over the last few years moved the business forward,” ALI President and Chief Executive Officer Bernard Vincent O. Dy said in a statement.
Property development, which accounts for the bulk of ALI’s revenues, grew its topline by four percent to P26.1 billion against a year ago’s P25.2 billion. First-quarter sales reservations stood at P34.1 billion, eight percent higher year on year.
“Our development business also continues to grow in line with expectations, posting a healthy increase in reservation sales due to the sustained demand from local and overseas Filipinos,” Mr. Dy said.
Meanwhile, the commercial leasing segment realized revenues of P9.2 billion during the quarter, 19% higher than the P7.7 billion seen a year ago. The business covers the operation of ALI’s shopping centers, offices, hotels, and resorts.
From shopping centers alone, revenues climbed 14% to P5.1 billion thanks to the contribution from newly opened malls such as Ayala Malls Feliz, Circuit Makati, Capitol Central, Vertis North, and Cloverleaf. Its malls in Makati, Glorietta and Greenbelt, also reported positive performances.
Office leasing revenues, meanwhile, accelerated 27% to P2.2 billion, as the company opened new offices including Ayala North Exchange Towers 1 and 2, Circuit Corporate Center Towers 1 and 2, and Vertis North Corporate Center Towers 1 and 2.
The recent opening of new hotels and resorts also lifted ALI’s revenues, as the business registered a 25% increase to P1.5 billion. The company ended the quarter with 3,018 rooms, coming from newly opened Seda Hotels in Vertis North, Quezon City, Ayala Center Cebu, and Lio in Palawan.
ALI said it spent P22.3 billion in capital expenditures in the first three months of the year, which was used for the completion of new projects in the pipeline. The company allocated a capex of P130 billion for the full year.
The company also noted that it has started development on its 526-hectare estate called Habini Bay in Misamis Oriental. The project will be anchored by the 104-hectare Laguindingan Technopark managed by its unit Laguna Technopark, Inc.
Mr. Dy earlier said that the company needs to grow its bottomline by 17% starting this year in order to hit its P40-billion profit target in 2020. The company is banking on the continued strength of the economy to support its goal.
Shares in ALI added 0.32% or 15 centavos to close at P46.95 each on Tuesday. — Arra B. Francia