PROPERTY developer Ayala Land Inc. (ALI) on Tuesday said it posted a 12- percent increase in net income during the nine months of the year to P23.2 billion from last year’s P20.76 billion, as real-estate revenues rose.
Revenues, however, only grew 2 percent to P121.7 billion from last year’s P119.68 billion.
Growth was driven primarily by real-estate revenues which stood at P119.7 billion, supported by office, commercial and industrial lot sales and further boosted by the improving performance of new leasing assets, the company said.
“Third-quarter financial results were in line with our expectations, following a similar pattern to what we have seen in the first half of the year. We, however, launched more developments during the period, which we anticipate will help us finish strong in 2019, and provide positive momentum in 2020. Commercial leasing assets, on the other hand, continue to outperform as business and consumer activity remain robust, and as more completed assets over the last couple of years stabilize and experience high occupancy rates,” company President and CEO Bernard Vincent Dy said.
ALI launched P37.8 billion worth of residential projects in the third quarter alone, bringing total launches for the nine months of the year to P57.3 billion.
Capital expenditures reached P78.2 billion for the period supporting continued residential and leasing asset buildup, with the, malls and offices segments expanding their gross leasable area further to 2.1 million and 1.2 million square meters, respectively.
ALI’s property development revenues amounted to P85.4 billion with contributions from a 51-percent growth in office for sale revenues to P11.1 billion, and a 16-percent increase in sales of commercial and industrial lots to P6.5 billion. Sales reservations remained steady at P108.5 billion, fueled by the growth in sales reservations of its middle-income segment units Alveo and Avida projects.
Local Filipinos continue to drive residential sales, comprising 70 percent of total. Sales from overseas Filipinos accounted for 14 percent, while sales from other nationalities took up the balance of 16 percent.
The company’s commercial leasing business expanded with total revenues up 16 percent to P27.6 billion. Shopping center revenues grew 10 percent to P15 billion with the increased contribution of new malls such as Ayala Malls Manila Bay, Ayala Malls Feliz, Circuit Makati and Capitol Central.
Revenues from office leasing also jumped 26 percent to P7.2 billion as new offices in Ayala North Exchange, Vertis North and Circuit Makati continue to improve performance, while the hotels and resorts segment grew its revenues by 17 percent to P5.4 billion on strong patronage of Seda hotels.
The company will list today its P10-billion fixed-rate bonds as it completes its funding requirements for the year. Proceeds from the offering will be used to fund land acquisitions, finance developments, such as One Ayala Avenue in Makati, and the Ayala Malls Vermosa in Cavite, as well as provide for the revitalization of existing sites, such as Glorietta and Greenbelt Malls in Makati.