Property developer Ayala Land Inc. said its income in January to September slid by 73 percent to P6.36 billion from last year’s P23.21 billion, as the pandemic continued to hurt its businesses.
The country’s second-largest property developer said revenues for the period were cut in half to P63.32 billion from last year’s P121.66 billion.
For the third quarter alone, the company reported a 77-percent drop in income to P1.84 billion from last year’s P8.05 billion. Revenues, meanwhile, fell 42 percent to P22.12 billion from last year’s P38.44 billion.
“We’ve seen, however, improvement in majority of our business lines in the third quarter as pandemic-related restrictions gradually eased. We anticipate favorable developments moving forward as the reopening of the economy gains traction and have started to introduce new product inventory in our estates,” company president and CEO Bernard Vincent O. Dy said.
Revenues from property development for the three quarters amounted to P40.6 billion, down by half from last year due to lower project bookings and limited construction activity. With the resumption of construction activities, property development revenues more than doubled to P15.7 billion in the third quarter from P7.6 billion in the second quarter.
Residential sales reservations for the period amounted to P60.8 billion, also lower by more than half from the previous year due to the limited selling activity during the quarantine periods. 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 also fell 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 by 29 percent to P1.5 billion on a quarterly basis as the easing of restrictions resulted in a higher foot traffic of 30 to 35 percent.
The company said its capital expenditures for the period reached P45.3 billion, or about 65 percent of the revised full-year budget of P69.8 billion, and were allocated mainly for residential developments and commercial leasing assets.
The company was able to launch 3 sequel projects with a total value of P2.2 billion in the third quarter. These were Ayala Land Premier’s Andacillo Phase 3A, Amaia Scapes Bulacan Series 4A and additional inventory in Bellavita Alaminos 2. These launches saw a significant takeup in spite of the limitations of the quarantine period.