ALI profits surge to P5.62B

MANILA, Philippines - Property giant Ayala Land Inc. (ALI) sustained its strong growth momentum en route to higher earnings in the first half of the year.

In a statement, ALI said its net income surged 30 percent to P5.62 billion in the first six months from P4.33 billion in the same period last year.

ALI said profit was “buoyed by the strong performance of its property development, commercial leasing and construction businesses.”

The real estate firm’s consolidated revenues spiked 36 percent to P36.63 billion from P27 billion a year ago.

“Our products are well accepted due to their presence in our integrated, mixed-use developments,” said ALI president and CEO Antonino Aquino.

“These developments are further enhanced by our new products and joint ventures that will enable us to have hotels, department stores, supermarkets, convenience stores and medical facilities to complete our master-planned communities,” Aquino added.

Revenues from real estate and hotels climbed 38 percent to P35.81 billion, accounting for the bulk of ALI’s consolidated revenues.

Property development, which includes the sale of residential lots and units, office spaces, as well as commercial and industrial lots, posted a 52-percent growth in revenues to P23.84 billion from P15.70 billion a year ago.

ALI said revenues from the residential segment hit P18.40 billion, up 28 percent from a year ago “driven by strong bookings across all residential brands.”

ALI operates five major brands: Ayala Land Premier for the upscale segment, Alveo Land for the upper and middle-income segment, Avida Land for the affordable market, Amaia Land for economic housing, and BellaVita for socialized housing.

“The sustained earnings growth is now supported significantly by newly launched growth centers in Arca South (formerly Food Terminal Inc.), Vertis North, and Circuit Makati,” Aquino said.

“This is in addition to the continuing growth of our products in our traditional centers of Makati, Bonifacio Global City, Nuvali and Cebu Park District,” he added.

Sales take-up value for the first six months of the year reached P43.79 billion, equivalent to an average monthly sales take-up of P7.3 billion, which is an all-time high, ALI said.

ALI said in the first six months, its residential brands launched a total of 10,130 units with a total sales value of P30.64 billion.

“Revenues from the sale of commercial and industrial lots increased 307 percent to P5.18 billion mainly attributed to the sale of commercial lots in the Arca South property,” ALI said.

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