EARNINGS of Ayala Land, Inc. (ALI) increased by 17% in the first quarter of 2017, driven by its continued development of real estate and commercial properties.
In a statement issued Tuesday, ALI disclosed a net income of P6.52 billion for the January to March period, supported by a 17% growth in revenues to P36.98 billion.
Residential revenues surged 34% to P21.77 billion during the first three months, pushing property development revenues 29% higher to P25.14 billion. Robust local demand helped lift reservation sales by 16% to P31.5 billion.
“With the sustained economic growth of our country, demand for residential products across all market segments remained strong in the first quarter of this year,” ALI President and Chief Executive Officer Bernard Vincent O. Dy was quoted as saying in a statement.
The listed property giant launched its 25th estate called Parklinks during the first quarter. The 35-hectare mixed-use project along the C-5 corridor is being developed in partnership with Lucio C. Tan, Sr.’s Eton Properties Philippines, Inc. The two companies have committed to spend P53 billion for the first phase of the project.
At the same time, ALI secured a controlling stake in Malaysian property firm MCT Bhd, giving it a platform to expand in the Southeast Asian region. MCT Bhd generated P1.72 billion in development revenues for the first quarter.
On the other hand, revenues from the commercial leasing segment went up 11% to P8.16 billion for the quarter.
“Our leasing businesses also continued their steady increase in contribution, as recently opened malls and offices stabilize and start making an impact to our bottom line,” Mr. Dy said.
ALI is slated to open five new shopping centers this year, namely One Bonifacio High Street, Ayala Malls Circuit Makati, Ayala Malls Capitol Central, The Shops at Ayala North Exchange, and Ayala Malls Bay Area.
In terms of office buildings, ALI is set to complete the Vertis North BPO Tower, Ayala North Exchange, and Capitol Central Corporate Center. The hotel and resort business will also see the addition of 782 rooms under the Seda Hotel brand and 72 new rooms from the Sicogon Island Resort in Iloilo.
For the first quarter, ALI said it has already spent P26.7 billion out of the P111-billion capital expenditure it plans to roll out this year. Forty-one percent of the capex was allocated for residential developments, 23% for equity investments including MCT Bhd and Prime Orion Philippines, Inc., 22% for commercial leasing projects, 9% for land acquisition, and 5% for estate development.
“Our capex spend is on track as we complete projects and introduce new offerings in our estates. We remain positive and continue to execute on our growth plans,” Mr. Dy said.
Shares in ALI went up 10 centavos or 0.25% to close at P40.10 each at the Philippine Stock Exchange on Tuesday. — Arra B. Francia
