Ayala Land earns P6.4 billion in 9 months

MANILA, Philippines — Ayala Land Inc. (ALI) continued to reel from the negative impact of COVID-19, reporting a 73 percent decline in net income to P6.4 billion in January to September.

However, ALI saw an improvement in numbers in the third quarter. Net income reached P1.8 billion, almost nine fold higher compared to the second quarter but still a steep drop from the P8 billion recorded in the third quarter last year.

ALI’s capital expenditures amounted to P45.3 billion during the nine month period or 65 percent of the revised full-year budget of P69.8 billion. This was allocated mainly for residential developments and commercial leasing assets.

ALI president and CEO Bernard Vincent Dy said COVID-19 continues to significantly affect the operations and performance of the company.

“We anticipate favorable developments moving forward as the reopening of the economy gains traction and we have started to introduce new product inventory in our estates,” Dy said.

Property development registered P40.6 billion in revenues during the nine-month period, down 52 percent due to lower project bookings and limited construction activity.

But with the resumption of construction activities, property development revenues more than doubled to P15.7 billion in the third quarter.

Residential sales reservations amounted to P60.8 billion, 56 percent of last year’s levels despite the limited selling activity during the quarantine period.

Notwithstanding the challenging environment, reservations in the third quarter reached P22.5 billion, a 66 percent improvement from the previous quarter as demand for residential products picked up.

Commercial leasing revenues decreased by 37 percent to P17.3 billion given restricted mall and hotel operations and the temporary closure of resorts during the period.

In the third quarter, however, mall revenues started to rebound, increasing 29 percent to P1.5 billion as restrictions eased resulting in a higher foot traffic of 30 percent to 35 percent of pre-COVID levels.

Despite the challenging environment, ALI moved closer to a return to normalcy by launching three sequel projects with  total value of P2.2 billion in the third quarter.

These projects are Ayala Land Premier’s Andacillo Phase 3A, Amaia Scapes Bulacan Series 4A and additional inventory in Bellavita Alaminos 2.