ALI profit rises 12% to P15.2 B

MANILA, Philippines — Ayala Land Inc. (ALI), the property giant of the Ayala Group, recorded a 12 percent increase in net income to P15.2 billion in the first half  as total revenue grew four percent to P83.2 billion.

“The economy continues to be quite supportive of the property industry...Moving forward, we are gearing up to continue to expand to introduce more products in the market,” ALI president and chief executive officer Bernard Vincent Dy said in a press conference yesterday.

In the second quarter alone, net income grew 10.4 percent to P7.8 billion.

In a press conference yesterday, officials said growth was driven by the sustained growth of ALI’s property development business led by office sales, complemented by the strong topline growth of its commercial leasing businesses.

Property development revenue reached P58.9 billion, while commercial leasing revenue grew 16 percent to P18.6 billion.

Residential revenue, meanwhile,   reached P44.5 billion, 11 percent lower than the previous year mainly due to the full sell out and completion of successful projects by Ayala Land Premiere and Alveo.

Avida generated P13.6 billion in revenue, 28 percent higher than last year, while Amaia recorded a 19 percent hike in revenue to P3.7 billion.

ALI’s capital expenditures reached P49.5 billion in the first half to sustain its residential and leasing asset buildup.

Augusto Bengzon, ALI senior vice president, chief finance officer, treasurer and chief compliance officer, said the company plans to sell P5 billion bonds this year partly to raise funds for its capex.

A total of 13 projects valued at P19.5 billion went to market in the first half .

The company plans to launch P111 billion worth of projects in the second half with a full-year target of P130 billion.

The Ayala North Exchange is one of the latest additions to the portfolio of AyalaLand Offices, which is currently the country’s leader in the office real estate sector with over 1.1 million square meters of leasable space in key cities nationwide.

Office properties form a significant part of ALI’s growth strategy as the company recently announced plans to establish a real estate investment trust (REIT) with prime commercial office assets in Makati.

It is looking at $500 million worth of REITs of which $300 million will be sold as early as this year.