Consolidated revenues, however, fell 13.7 percent to P8.14 billion from P9.42 billion as the continued weakness of the office sector created pressure on rental rates.
For the third quarter alone, ALI’s profits grew 27 percent to P550 million from only P433 million last year. Revenues, on the other hand, amounted to P2.91 billion or 9.8 percent higher than the year ago level of P2.65 billion.
Rental properties continued to be the main driver of revenues, generating P2.39 billion or 29 percent of consoldiated revenues. Occupancy rates at the company’s shopping centers (excluding the redeveloped Greenbelt) remained high at 96 percent despite a five-to-eight percent increase in basic rent.
New store openings at Greenbelt 2 and 3 brought the area’s occupancy rate to 50 percent, placing Ayala Center’s overall occupancy rate at 90 percent.
With new inventory of residential lots offered to the market, ALI raised P1.75 billion in land sales, representing 22 percent of total revenues. In addition to the new phases launched in Ayala Westgrove Heights and Ayala Greenfield Estates, new lot offerings were made in Verdana Homes, With full take up of the 241 lots in Phase I of Verdana Homes, a second phase with 212 lots were launched in August, 85 percent of which has been taken up at the end of September.
ALI said the relaunch of Ayala Greenfield Estates in September as a golf and leisure community generated new sales, enabling the project to post a 60-percent take-up on the 458 cumulative-lot offering.
During the first nine months, ALI booked the sale of 49 lots in Ferndale Home and 13 commercial lots in Paseo de Magallanes.
The company’s hotels and serviced apartments performed well and contributed P319 million, representing 12 percent of the total. Occupancy rates of Hotel InterContinental Manila and Oakwood Premier Ayala Center were posted at 77 percent and 78 percent, respectively, both significantly higher than the other hotels in the Makati Central Business District which have an average occupancy rate of 65 percent.
Accounting for 10 percent or P847 million of total revenues were residential condominium and townhomes projects. At the end of September, the 365-unit One Legazpi Park was 65 percent taken up while One Roxas Triangle posted a 58-percent take up rate.
During the review period, ALI spent P1.7 billion or 40 percent of the programmed capital expenditure budget for the year. The money was used to finance the development of shopping centers, 33 percent for high-end residential building/townhomes and the balance for other projects and equity infusion to subsdiaries.
Funding for its projects come from a combination of borrowings and internally-generated funds.
As the economic conditions are not expected to recover in the near-term, ALI has identified strategic projects and investments that will allow it to tap existing pockets of opportunities and prepare for the eventual upturn.