PROPERTY developer Ayala Land Inc. (ALI) on Monday said its income rose 18 percent during the first half of the year ending June to P11.5 billion, from last year’s P9.7 billion, boosted by residential sales.
ALI’s property sales in the first half of the year remained robust, reaching P61.4 billion, 11-percent higher than P55.1 billion last year. This translates to an average monthly sale of P10.2 billion, it said.
“We’ve seen residential sales pick up in 2017, after a few years of relatively flat growth. Given our pipeline of launches for the balance of 2017, we remain positive that we can sustain the growth in the second half of the year,” said Bernard Vincent O. Dy, the company’s president and CEO. “At the same time, our leasing business continues on its steady upward trajectory given the increasing contribution of our new shopping centers, offices and hotels.”
ALI’s revenues also grew 18 percent to P64.5 billion, from P54.8 billion last year. The developer’s revenues from real estate increased 18 percent to P60.5 billion.
More than half of company revenues came from property development, which includes the sale of residential lots and units, office spaces, as well as commercial and industrial lots.
ALI said it remains on track in executing plans toward achieving its 2020 net-income target of P40 billion. To do this, it had to post a 20-percent growth every year through 2020.
During the first half of the year, the company launched the 200-hectare Evo City in Kawit, Cavite, envisioned to become a new central business district in the area.
It also opened an Ayala mall and its largest Seda hotel in Vertis North, a mixed-use estate in Quezon City. The developer also introduced Ayala Land Premier’s Cerilo, an 85-hectare upscale residential community in its flagship sustainable estate, Nuvali, Laguna.
“Our sustainable estates serve as platforms for growth as we expand to new geographies across the country. Our latest estate in Kawit was well received by the market when we introduced its first residential project in May,” Dy said. “We look forward to the launch of two more estates [this year:] Azuela Cove in Davao and Parklinks along C5 in Quezon and Pasig cities.”
Total revenues from property development amounted to P44.3 billion, 32 percent higher than P33.7 billion last year, while total revenues from commercial leasing amounted to P14.17 billion, 11 percent higher than P12.76 billion last year.
ALI spent a total of P41.6 billion for project and capital expenditures as of June. About half of this amount was spent on the completion of residential projects. About 33 percent went to commercial-leasing projects; 12 percent to land acquisition, new businesses, services and other investments; while 7 percent to the development of its estates.
Image credits: Nonie Reyes
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