Ayala Land net income up 5.5% to P1.71-B in 9 mos

Ayala Land Inc. (ALI) reported a 5.5-percent growth in net income for the first nine months of the year to P1.71 billion, from only P1.62 billion in the same period last year.

Based on financial statements filed with the Securities and Exchange Commission, ALI said its consolidated revenues amounted to P10 billion for the period up by 22.85 percent from the year ago level of P8.14 billion.

Rental revenues continued to be the main driver of growth, generating P2.67 billion or 27 percent of consolidated revenues. Of the total rental revenues, 83 percent came from shopping centers, 13 percent from office leasing and the balance of four percent from leased units at the Greenbelt Residences, One Roxas Triangle and some Makati lots.

Ayala Center, the largest contributor to rentals, maintained its high occupancy rate which averaged at 96 percent over the nine-month period. The soft opening of Greenbelt 4 in the fourth quarter is seen to augment rental revenues by yearend.

Revenues from land sales rose 33 percent, pumping in P1.7 billion or 17 percent to total revenues. Additional prime residential lots were put on the market at Ayala Westgrove Heights and Ayala Hillside Estates.

ALI registered P1.4 billion in residential unit sales, accounting for 14 percent of total revenues.

This translated to a 60-percent growth year-on-year, primarily coming from the newly-launched The Residences at Greenbelt (Laguna Tower), higher sales volume at One Roxas Triangle as well as additional unit sales and incremental recognition of prior year’s sales at One Legazpi Park and Ferndale Homes as construction progressed.

Revenues from mass housing arm Laguna Properties Holdings Inc. contributed P1.2 billion or 12 percent to total revenues, 52 percent higher year-on-year.

Booked units grew 33 percent in the first nine months of the year to 914 units.

Revenue growth outpaced the growth in unit bookings due to the sale of seven high-value, commercial lots adjacent to LPHI’s residential developments.

ALI’s hotel portfolio generated P924 million in revenues, about nine percent of total. Hotel InterContinental Manila and Oakwood Premiere Ayala Center were 62 percent and 69 percent occupied, respectively, compared to the Makati Central Business District’s average of 64 percent.

Cebu City Marriott Hotel posted an occupancy rate of 74 percent higher than the 63-percent average occupancy of comparable hotels.

Revenues from construction projects of wholly-owned Makati Development Corp. totaled P535 million or five percent of consolidated revenues.

This is 27 percent lower year-on-year as the dearth of new projects in the construction business restricted growth. – Reuters