AYALA LAND, Inc. (ALI) reported a 12% growth in its earnings during the first nine months on the back of the robust growth of its real estate business.

The net income of the listed property developer stood at P23.2 billion during the nine-month period, as total revenues inched up 2% to P121.7 billion. Its real estate business added P119.7 billion to the pie from the growth of its office, commercial and industrial lot sales.

ALI was able to launch P37.8 billion worth of residential projects in the July to September period, which bought its total launches year to date to P57.3 billion.

“Third quarter financial results were in line with our expectations, following a similar pattern to what we have seen in the first half of the year,” ALI President and Chief Executive Officer Bernard Vincent O. Dy said in a statement.

He added the company was able to launch more development projects during the period, which he hopes will sustain the company’s growth momentum heading into 2020.

Revenues from ALI’s property development business reached P85.4 billion in the nine months to September. This was driven by a 51% rise in office for sales revenues to P11.1 billion and a 16% growth in commercial and industrial lot sales to P6.5 billion.

Reservation sales added P108.5 billion, coming from the strong performance of its subsidiaries Alveo Land Corp. and Avida Land Corp.

For the commercial leasing business of ALI, revenues increased 16% to P27.6 billion due to new malls opened during the period. It was able to record a 15% growth in shopping center revenues to P15 billion from its new malls in Parañaque City, Pasig City, Makati City and Bacolod City.

Office leasing revenues likewise increased 26% to P7.2 billion, which came from new offices in Makati City and Quezon City. Hotels and resorts revenues also jumped 17% to P5.4 billion from its properties in Cebu and Palawan.

ALI spent P78.2 billion in capital expenditures during the nine-month period. This was dedicated mostly to the expansion of the company’s residential and leasing assets.

It is planning to conduct a fixed-rate bond issuance this month to raise up to P10 billion, which will fund the company’s land acquisitions and developments.

Shares in ALI on the stock exchange traded flat on Tuesday to close at P49 each. — Denise A. Valdez

RELATED ARTICLESMORE FROM AUTHOR