By Arra B. Francia, Reporter
AYALA LAND, Inc. (ALI) expanded its attributable profit by 18% in the second quarter of 2018, as the company reported growth across its residential, office, mall, and other businesses during the period.
ALI Chief Finance Officer Augusto Cesar D. Bengzon said in a briefing in Makati yesterday that net income attributable to equity holders of the parent climbed to P7.21 billion in the April to June period, from P5.9 billion in the second quarter of 2017. Revenues meanwhile went up by more than a third to P43.4 billion, versus the P32.9 billion it posted in the same period a year ago.
This pushed the company’s attributable profit 18% higher to P13.5 billion in the first half of 2018, while revenues gained 25% to P80.4 billion.
“The economy continues to be very supportive of the property sector. There has been growth across the board in all product lines. For the balance of the year, given what we’re seeing in the economy, we’re optimistic we will be able to sustain growth we’ve achieved in the first half of the year,” ALI President and Chief Executive Officer Bernard Vincent O. Dy said during the same briefing.
For the first six months of 2018, revenues from the sale of residential lots and units, office spaces, and commercial and industrial lots surged 27% to P55.7 billion, while commercial and industrial lot sales increased by 16% to P3.9 billion.
Reservation sales for the six-month period improved by 17% to P72 billion, indicating a monthly take-up of P12 billion. It launched five residential projects during the period, namely The Residences at Azuela Cove in Davao, Cerilo Phase 4 and 5 in Laguna, Callisto Tower 2 in Circuit Makati, Ametta Place Phase 3 in Pasig, and Avida Towers Abreeza Tower in Davao.
The listed property developer also recognized P4 billion in sales from its investment in Malaysia through MCT Bhd, where it is currently completing an integrated development in Southern Klang Valley as well as a residential project in Cyberjaya.
For malls, ALI ended the first half with 1.81 million square meters in gross leasable area, with an average occupancy of 89%. The company’s malls command an average lease rate of P1,060 per sq.m. per month.
The office segment meanwhile had 1.02 million sq.m. in GLA by the end of the first half, 93% of which have been leased out. Lease rates are priced at P742 per sq.m. every month on average.
Sales of residential projects, offices, commercial and industrial lots accounted for 68% of the company’s net income for the period, while mall leasing, office leasing, hotels and resorts, and property management provided for the remaining 32%.
Mr. Bengzon noted ALI has not come close to the 50-50 contribution target from residential development and leasing businesses, due to the strength of the latter. The ALI official was referring to the company’s 2020 vision, which targets to generate P20 billion in revenues from both residential development and leasing segments by 2020.
“What’s important is we’re growing both developments. We don’t want to artificially contain the business… we continue to grow based on the best opportunities that we see,” Mr. Dy explained.
The company has spent P48.4 billion in capital expenditures for the first half of 2018, out of its P110.8-billion allocation for the year. Of this, 45% was spent to complete residential projects, 25% for commercial leasing projects, 15% for equity investments, including for its Malaysian unit MCT Bhd and Prime Orion Philippines, Inc., 10% for land acquisitions and five percent for estate development.
Shares in ALI rose 3.58% or P1.45 to close at P41.95 each at the stock exchange on Monday.

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