AYALA Land Inc., the country’s second-largest property developer, said its net income for the first three months of the year reached P5.56 billion, 18 percent higher than the P4.71 billion it made last year. Consolidated revenues reached P31.64 billion, 17 percent higher compared from last year’s P26.97 billion, mainly due to the solid performance of its property development, commercial leasing and service businesses.
Property sales take-up rose 10 percent to P27.3 billion driven by the growing demand to purchase residential and office products.
“Our core businesses delivered strong results in the first quarter of 2017,” said Bernard Vincent Dy, the company’s president and CEO.
“Property sales have been encouraging and our commercial revenues continue to be on an upward trajectory. Given these positive results, we remain committed to launch over P100 billion worth of projects to support our targets for the year,” he said.
The company will launch three mixed-use developments this year, including 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 Inc. in Pasig and Quezon City.
First to be launched is Evo City, envisioned to become a prime central business district—the first of its kind in Kawit, Cavite.
“Estates provide the platform for our current and future growth,” Dy said.
As part of its 2020 vision of reaching P40 billion in annual income, the company said it will continue to bolster its leasing business, which contributed more than a third to the company’s net income in the first quarter of the year.
Ayala Malls lined up the opening of six shopping centers this year, including the recently opened The 30th in Pasig and Vertis North in Quezon City, which will open in June. The company is also slated to deliver 185,000 square meters of office spaces this year, to be located at The 30th, Circuit Makati, Vertis North, Cebu IT Park and Bonifacio Global City.
To boost its current hotels and resorts portfolio, the company opened bed-and-breakfast facilities in Lio, Palawan, and recently marked the soft opening of Seda Vertis North in Quezon City.
Total revenues from property development amounted to P19.72 billion, 21 percent higher than the P16.31 billion posted in the same period in 2016, while revenues from commercial leasing amounted to P7.05 billion, 9 percent higher than P6.45 billion last year.
The company spent a total of P21.8 billion for project and capital expenditures in the first three months of 2017. Of the total capital expenditure, 46 percent was spent on the completion of residential projects; 37 percent on commercial leasing projects; 14 percent on land acquisition, new businesses, services and other investments; and 3 percent on the development of its estates.