ALI profit up 30% to 8.6B

MANILA, Philippines - Ayala Land Inc. sustained its growth trajectory in the first nine months of the year with profit rising 30 percent to P8.6 billion, mainly driven by the upbeat performance of its property development, commercial leasing and services businesses.

In a financial report submitted to securities regulators, ALI said  revenues from January to September  grew 38 percent to P57.71 billion.  Revenues from its real estate and hotels businesses expanded 39 percent  to P55.78 billion, accounting for the bulk of aggregate revenues.

Given its robust earnings, ALI is confident it would hit its P10-billion net income target for 2014 as it scales up the development of large-scale, masterplanned, fully-integrated and sustainable projects across the country.

 â€œWe are pleased with the organization’s steady and high growth performance which should exceed our aggressive P10-billion target ahead of our five-year plan,” said ALI president Antonino Aquino.

Among the company’s new township projects include  Circuit Makati, Altaraza in San Jose Del Monte, Bulacan, and Atria Park District in Mandurriao, Iloilo City, all launched within the first three quarters of the year. 

During the third  quarter, it launched Two Roxas Triangle, a development by Ayala Land Premier (ALP) and Avida Towers Asten, both located in Makati City. It likewise offered Avida Towers Astrea in Fairview Quezon City and Amaia Steps Pasig, and opened UP Town Center, a retail development along Katipunan Avenue in Quezon City. 

 â€œTogether with the high net income growth, the company has also been able to substantially increase its landbank, build its recurring income base, and strengthen its balance sheet and organizational capability to provide the platform for continuing growth in the years ahead,” Aquino said.

Revenues from the property development, which includes the sale of residential lots and units, office spaces, as well as commercial and industrial lots, amounted to  P37.02 billion or an increase of  51 percent from  the P24.57 billion recorded  a year earlier.

The residential segment, on the other hand, registered revenues of P28.22 billion or 23 percent higher than the previous year due to strong bookings across all residential brands.

ALI’s five residential brands rolled out  a total of 12,196 units during the nine-month period with total sales value of P51.07 billion.

Ayala Land Premier, a unit catering to the high-end market,  saw a 30-percent growth in revenues to P11 billion, driven by higher sales and percentage of completion from premium condominium units and contributions from its newly launched Luscara, a 50-hectare development in its Nuvali.

Middle-income residential arm Alveo, on the other hand, chalked up  P6.49 billion in revenues, up 15 percent year on year.

Affordable housing units Avida and Amaia likewise  recorded higher revenues, increasing by 37 percent and 43 percent, respectively to P8.3 billion and P1.46 billion.

Meanwhile, revenues from the sale of commercial and industrial Lots jumped  by 416 percent   to P8.22 billion, largely due to the sale of lots in the Arca South property (formerly the site of the Food Terminal Inc).

Revenues for shopping centers rose  13 percent to P7.61 billion while that of office leasing operations went up by 18 percent  to P2.6 billion.