ALI posts record P11.74-B profit in 2013

MANILA, Philippines - Property giant Ayala Land Inc. (ALI) breached its P10-billion income target in 2013 as its profits surged 30 percent to a record P11.74 billion from P9.04 billion in 2012.

The property development arm of the Ayala conglomerate is jacking up its capital spending to P70 billion this year as it commits to launch 78 projects worth P142 billion to ensure continuous growth in the coming years.

“Strong growth by each of our business lines showed good execution of the growth strategy with the increased delivery of new products in new geographies,” said ALI president and CEO Antonino T. Aquino.

“Market acceptance of the products was enhanced by their presence in our integrated mixed-use communities across the country and the strong ALI brand,” Aquino said.

Consolidated revenues jumped 36 percent to P81.52 billion, driven by revenues from real estate that climbed 40 percent to P76.34 billion amid the strong performance across the property development, commercial leasing and services business lines.

Last year, the property development segment which includes the sale of residential lots and units, office spaces, and commercial and industrial lots, posted P51.96 billion in revenues, up 51 percent from P34.46 billion in 2012.

Total revenues for commercial leasing rose 21 percent to P18 billion from P14.91 billion.

The services segment, through wholly-owned construction and property management companies, generated P26.33 billion in revenues, 29 percent higher than the P20.38 billion a year ago.

“During the same period of high profit growth, ALI also doubled its landbank, improved its organizational capability and strengthened its capital structure. These foundations will enable ALI to grow further in the years ahead,” Aquino said.

“[Successful fundraising activities] enabled ALI to fund its aggressive capex program, which allowed it to secure strategic landbank positions in key growth centers and support business expansion,” said ALI chief finance officer Jaime E. Ysmael.

The five residential brands of the property firm launched a total of 28,482 units worth P108 billion last year. For 2014, ALI said it plans to launch 30,000 units across all residential brands this year, anticipating continued demand for housing products.