ALI senior vice-president Jaime Ysmael said the company is doing well in the second quarter as it continues to pursue growth opportunities in new markets.
"We’re doing fine. In fact, we’re ahead compared to last year’s performance. Sales are trending higher. Our shopping centers are doing well," Ysmael said.
ALI, building of upscale malls, high-rise office and residential condominiums, and posh residential villages, posted a net income of P1.2 billion in January to March this year against a restated P496-million profit the previous level.
The company, majority-owned by the country’s oldest conglomerate Ayala Corp., earlier said it sees double-digit net income growth this year from profits of P3 billion in 2004, boosted by some asset sales.
Analysts expect an 18-percent increase in ALI’s net income this year to P3.55 billion.
Ysmael said there has been strong take-up in ALI’s residential projects and its middle and mass housing market segments.
The core-mid and mass housing segments continue to pose opportunities for ALI amidst strong end-user demand for high quality affordable residences.
He said ALI has already began construction of the 200,000 square meter commercial center at the North Triangle Depot of MRT-3 which is slated for completion by mid-2007.
The project will involve the development of an integrated retail center with around 204,000 square meters of gross leasable area – a major component of ALI’s strategy of expanding its leasing portfolio.
Ysmael said the Development Bank of the Philippines and the Rizal Commercial Banking Corp. provided a P3-billion loan to partially finance the construction of the commercial center project.
He said ALI’s strategy is to offer new products and projects in new geographic areas and markets. When completed, these projects are expected to significantly augment the company’s recurring revenue stream.
Apart from the North Triangle commercial center, other projects of ALI include the expansion of Market! Market!, the Anvaya Cove in Morong Bataan (a residential and beach resort community), and new residential subdivisions to cater to the middle-income market.
Ysmael said the company will also start development of its first real estate venture in Sta. Cruz, Manila in partnership with the Manila Jockey Club Inc. This is ALI’s first real estate venture in the city of Manila and will allow it to tap the mass and middle income segments in the area.
He said ALI also expects to draw additional revenues from its office developments with the opening of business process outsourcing offices PeopleSupport Center and Convergys within the year.
The expanded product offerings, Ysmael said, will be complemented by intensified sales and marketing efforts to broaden market reach and tap the growing market of overseas-based Filipinos.
To further expand its coverage and boost its profitability, ALI formed Ayala International Sales Inc. to market its products to million of Filipinos working and living abroad, particularly in the United States and Canada.
The campaign could generate up to a fifth of ALI’s total land sales this year. Last year, sales of real estate to overseas Filipinos accounted for up to 10 percent of ALI’s sales.