ALI profit down 74% to P8.7 billion

MANILA, Philippines — Ayala Land Inc. (ALI) reported a 74 percent drop in net income in 2020 to P8.7 billion.

Consolidated revenue declined by 43 percent  to P96.3 billion due to the negative impact of the COVID-19 pandemic.

However, ALI posted a 28 percent growth in net income in the fourth quarter to P2.4 billion.  Revenues jumped by 49 percent to P33 billion.

ALI president and CEO Bernard Vincent Dy said there was no escaping the major disruption caused by the pandemic, but the company is encouraged by its performance in the latter part of 2020.

“In 2020, greater value was placed on maintaining a strong balance sheet to weather this crisis and prepare our company to resume our growth aspirations.  Operating procedures were also put in place to ensure the safety of our people and our customers and initiatives were introduced to provide assistance to various stakeholders during this difficult period,” Dy said.

Revenues from property development declined to P66.5 billion for the year due to construction restrictions and lower bookings.  The figure soared 64 percent to P25.8 billion in the fourth quarter, boosted by continuous construction progress in 174 projects across the country.

Despite limited sales mobility, sales reservations amounted to P81.9 billion – 56 percent of the level in 2019, while fourth quarter numbers further reached P21.1 billion or 58 percent of pre-COVID levels due to sustained property demand.

ALI said commercial leasing revenues declined by 44 percent to P21.9 billion given limited mall and hotel operations, although mall revenues managed to grow 10 percent to P1.7 billion in the fourth quarter as quarantine restrictions eased.

For this year, ALI plans to spend P88 billion for its capital expenditures. It has also set P100 billion worth of new launches across all its property brands, Dy said.

AREIT Inc., ALI’s real estate investment trust, recorded a net income of P1.23 billion due to stable operations.  Revenues, meanwhile, reached P1.95 billion in revenues.

It plans to double its leasable portfolio within the next few years.

The company has 344,000 square meters of leasable space from its six commercial properties valued at P37 billion.