Ayala Land profit rises 18%

MANILA, Philippines - Ayala Land Inc. (ALI) grew its first quarter net income to P5.56 billion, up 18 percent from the same period a year ago.

This puts ALI on track to hitting its 2020 net income goal of P40 billion, it said.

Consolidated revenues reached P31.64 billion, 17 percent higher than the previous year as the company’s core businesses – property development, commercial leasing and services – remained strong.

“Our core businesses delivered strong results in the first quarter of 2017,” said ALI president Bernard Vincent Dy.

He said property sales grew 10 percent to P27.3 billion as demand for residential and office spaces continued to grow.

“Given these positive results, we remain committed to launch over P100 billion worth of projects to support our targets for the year,” Dy said.

 ALI will launch three estates this year – the 200-hectare Evo City in Kawit, Cavite, the 25-hectare Azuela Cove in Davao and the 35-hectare joint venture project with the LT Group within Pasig and Quezon City.

“Estates provide the platform for our current and future growth. We look forward to introducing three new estates in high growth areas this year and continue our programmed investments in our established and emerging estates across the country,” Dy said.

The leasing business, meanwhile, contributed 38 percent to the company’s net income during the period.

For shopping malls, Ayala Malls lined up six shopping centers this year, including the recently opened Ayala Malls The 30th in Pasig and Ayala Malls Vertis North in Quezon City which will open this June.

The company is slated to deliver 185,000 square meters of office spaces this year and these will be located at Ayala Malls The 30th, Circuit Makati, Vertis North, Cebu IT Park and Bonifacio Global City.

To boost its current hotels and resorts portfolio, ALI opened B&Bs at Lio in Palawan. Seda Vertis North in Quezon City recently held a soft opening.

 During the quarter, ALI spent  P21.8 billion for project and capital expenditures, of which 46 percent went to residential projects; 37 percent for commercial leasing, 14 percent for land acquisition, new businesses, services and other investments, and three percent for the development of its estates.