Ayala Land sees better Q1 income

Property giant Ayala Land Inc. (ALI) said its net income in the first quarter of this year is expected to slightly exceed the P500-million profit posted in the same period last year, driven by the continued growth in its core revenue base of commercial center rentals and property sales.

ALI president Francisco Licuanan said that despite the tough economic environment weighed down by concerns of war in the Middle East and the security situation in Mindanao, rental income from its malls showed improvement, mainly due to the opening of the redeveloped Greenbelt area.

During the first quarter of 2002, ALI got off to a slow start as its bottom line earnings were slightly lower than the prior year. The company said the first quarter is traditionally a weak period, particularly as shopping and real estate deals mellow down coming after the holiday season.

He added that notwithstanding ongoing Iraq-US conflict, the company is targeting to match or slightly better its full-year profit of P2.52 billion last year, which was a 10- percent improvement over 2001 income.

"It’s going to be a fairly tough year… we are targeting growth but this would have to be achieved with a lot of work, some difficulty, and hopefully, a little luck," Licuanan said.

ALI vice president and comptroller Jaime Ysmael added that the company has programmed to spend P5.1 billion this year for its projects and working capital requirements. The bulk, or P5.1 billion of the amount would be channeled to "real capex" – which include the expansion and development of its shopping malls and equity investments in its subsidiaries.

Another P2.8 billion would go for the acquisition cost of the Fort Bonifacio Development Corp. a deal that would transfer the latter’s 50.38-percent stake in Bonifacio Land Corp. in exchange for the absorption of a $90 million loan from Larouge B.V., a wholly-owned subsidiary of MPC’s parent firm First Pacific Co. Ltd.

Aside from the loan, ALI-GDC will assume P655 million in notes payable from BLC and another five percent of BLC shares pledge for any adjustments for disclosed and undisclosed items, covering up to P1.37 billion of adjustments at FBDC, the developer of the Bonifacio Global City where BLC holds a 55-percent stake. – Conrado Diaz Jr.