ALI posts 34% income growth to P2.51 billion in first half

MANILA, Philippines -  Ayala Land Inc. (ALI) performed very strongly in the first half of 2010 as it sustained its earnings growth momentum and recorded a net income of P2.51 billion, 34 percent higher than the P1.87 billion recorded in the same period last year. The company’s earnings of P1.32 billion in the second quarter was also a new record high and 10 percent higher than the P1.2 billion posted in the first quarter.

Consolidated revenues for the first half reached P18.45 billion, 28 percent higher year-on-year, largely due to the strong growth in the residential and construction businesses. The company’s leasing operations in shopping centers, offices and hotels likewise performed well and contributed to overall revenue growth.

Consolidated net operating income (NOI), meanwhile, reached P5.22 billion for the first six months of 2010, 25 percent higher than the same period last year. The company’s blended NOI margins likewise improved to 31 percent in the second quarter, from 29 percent in the first quarter.

“Our positive results in the first half of the year reflect the growth achieved across our businesses. The fundamental drivers of the property market as a whole are supportive of our expansion plans and so far I believe that our business units have been executing very well,” said Antonino T. Aquino, ALI president and CEO. “We will continue to push forward with our growth strategy, building our presence in key growth centers around the country in order to further strengthen our market position and deliver on the goals we have committed to our investors.”

Residential revenues reached P8.56 billion for the first six months of 2010, 25 percent higher than the P6.85 billion reported during the same period last year, with strong growth in bookings exhibited by Ayala Land Premiere (ALP), Alveo and Avida. Together with newly launched fourth brand Amaia, the company’s four residential brands launched a total of 7,091 units in the first six months, or 76 percent of the Company’s original target of 9,275 units for the year.

“We expect demand in the residential sector to remain strong, thus we have increased our full-year target in 2010 to nearly 12,000 units,” said Aquino.

Total revenues for shopping centers amounted to P2.35 billion for the first half of 2010, six percent higher than in the same period last year. This was driven by the net expansion in occupied gross leasable area (GLA) as the addition of MarQuee Mall in Pampanga and improving occupancy rates at Greenbelt 5 and Market! Market! more than offset the closure of Glorietta 1. The company’s value-oriented anchor tenants also continued to perform well with double-digit increases in same-store sales growth.

Revenues from the company’s office building portfolio reached P844 million in the first six months of 2010, compared with P788 million for the same period last year. The seven percent improvement in office building revenues was generated by the significant growth in occupied business process outsourcing office (BPO) GLA, which increased by 50,859 square meters compared with end-June 2009. Occupancy on the BPO portfolio has now reached 67 percent (with a 79 percent lease-out rate) compared with 56 percent a year ago. Office revenues were further boosted by a four percent increase in average BPO lease rates due to both programmed rental escalations and a general improvement in outlook for the BPO sector.

ALI continues to seize new opportunities for growth. Company officials recently signed a 30-year lease agreement with Ellimac Prime