ALI profit jumps 30% to P2.76 B

MANILA, Philippines - The property unit of the Ayala conglomerate recorded another hefty profit growth in the first quarter on the back of better performance across all business segments.

Net income of Ayala Land Inc. (ALI) jumped 30 percent to P2.76 billion in the first three months compared with P2.13 billion a year ago.

Consolidated revenues hit P18.53 billion, up 38 percent from P13.39 billion in the same period last year.

“We are pleased that we have sustained this quarter’s growth trajectory, even as we embarked on new land banking initiatives which further expand our geographical reach and will benefit ALI in the long term,” president and CEO Antonino T. Aquino said.

ALI said revenues from real estate and hotels, which account for bulk of consolidated revenues, jumped 40 percent to P17.94 billion.

“Demand for our products continues to be strong, as reflected in the bookings and sales take-up of our recent residential launches,” said ALI chief finance officer Jaime E. Ysmael.

Commercial spaces continue to enjoy good lease and occupancy rates, particularly in business process outsourcing (BPO) offices, Ysmael said.

“A number of our new hotels and additional rooms in our new resorts have recently come on stream,” Ysmael said.

The property development segment, which includes the sale of residential lots and units, and the sale of commercial and industrial lots, grew its revenues by more than half to P12.11 billion from P7.75 billion a year ago.

In particular, the residential business posted a 17-percent growth in revenues to P8.01 billion “on the back of a 33-percent improvement in the value of bookings across the residential brands Ayala Land Premier, Alveo, Avida and Amaia.”

In the first quarter, the four residential brands launched a total of 4,010 units with a total sales value of P10.1 billion.

Revenues from the sale of commercial and industrial lots surged 348 percent to P4.1 billion due to the sale of commercial lots in the Arca South property (Food Terminal Inc).

Revenues from shopping centers increased seven percent to P2.44 billion as occupied gross leasable area rose 6.9 percent year-on-year.

ALI said revenues of the hotels and resorts business climbed 86 percent to P1.21 billion from P650 million a year ago “largely due to the opening of new hotels and resorts.”

The hotels and resorts business now operates 1,294 internationally branded hotel rooms in Hotel InterContinental Manila, Cebu City Marriott, Fairmont Hotel and Raffles Suites and Residences Makati, and Holiday Inn & Suites Makati; 192 island resort rooms in Lagen, Miniloc, Apulit and Pangulasian islands in the province of Palawan; and 515 hotel rooms under its own Seda brand in Bonifacio Global City, Centrio Cagayan de Oro, and Abreeza Davao.

ALI’s earnings surged 27 percent to P9.04 billion last year from P7.14 billion in the previous year as revenues from its residential, hotel, office and commercial projects jumped 23 percent to P54.52 billion.