ALI profit rises 17% to P12.83 B in 9 months

MANILA, Philippines - Ayala Land Inc. reported a 17 percent increase in net income in the nine months to September this year to P12.83 billion, driven by higher revenues.

Consolidated revenues rose 14 percent to P85.49 billion as the company continued to benefit from a strong real estate sector.

“Our financial results continue to be positive and reflective of a buoyant real estate industry. New products introduced in our various estates in 2016 have started to contribute to our performance and are expected to help sustain our growth moving forward,” said ALI president Bernard Vincent Dy.

Revenues from real estate increased 15 percent to P80.5 billion on sustained growth of the residential and office for sale segments, and the strong performance of shopping centers.

Total revenues from property development, which includes the sale of residential lots and units, office spaces, as well as commercial and industrial lots, amounted to P52.61 billion, up 12 percent.

Sales from residential and office for sale projects reached P84.32 billion, an increase of two percent.

The company’s commercial leasing business likewise grew 12 percent to P19.17 billion, fueled by the simultaneous expansion of its malls, offices, and hotels and resorts portfolios.

Office leasing portfolio also remained strong, generating revenues of P4.01 billion, 10 percent higher than the previous year on higher rental rates in existing office buildings and the positive contribution of new developments such as Bonifacio Stopover and BGC Corporate Center in Taguig City. The gross leasable area of its office portfolio currently stands at 753,000 square meters.

Revenues from the hotels and resorts business expanded by six percent to P4.57 billion.

ALI has so far spent P63.9 billion, of which 40 percent and 27 percent were spent in completing residential and commercial leasing projects, respectively.