Property developer Ayala Land Inc. (ALI) on Tuesday said its attributable income in January to September went up by more than 50 percent to P13.34 billion from last year’s P8.58 billion as business and consumer activity accelerated.
Consolidated revenues for the period grew 19 percent to P86.31 billion from the previous year’s P72.6 billion.
For the third quarter alone, the company posted a net income of P5.26 billion, double than last year’s P2.54 billion, while consolidated revenues reached P32.97 billion, 39 percent more than the previous P23.64 billion.
“The acceleration in business and consumer activity during the period enabled us to generate significant earnings growth,” Ayala Land President and CEO Bernard Vincent O. Dy said.
“The demand for our residential products remained resilient and local consumption continues to be robust despite geopolitical and macroeconomic challenges. We believe the strength of our local market will provide the backbone to sustain the growth of our diversified real estate portfolio for the rest of the year.”
The company’s property development revenues increased by 7 percent to P55.2 billion, led by commercial lot sales and construction progress in its residential projects.
For the nine months, revenues from commercial lots jumped by 82 percent to P7.5 billion due to strong investor demand at Nuvali, Arca South and South Coast City estates, while residential revenues improved by 2 percent to P45.6 billion.
Office-for-sale revenues declined by 26 percent to P2.1 billion due to the completion of Alveo’s Park Triangle Tower at BGC and moderate take-up on remaining inventory.
Demand for Ayala Land’s residential products remained resilient as the company recorded P77.3 billion in reservation sales, 10 percent more than last year. Sales from local Filipinos comprised 65 percent of the total, overseas Filipinos had a 22 percent share and other nationalities accounted for 13 percent.
The projects that were most sought after during the period were Ayala Land Premier’s Ciela at Aera Heights in Carmona, Cavite, and the Parklinks North Tower in Quezon City, Amaia’s Skies Cubao Tower 3 in Quezon City, and Avida’s Serin East Tower 4 in Tagaytay City.
The company launched eight new projects valued at P25 billion in the third quarter, bringing the total to 20 projects worth P60 billion as of September.
In commercial leasing, revenues rose 64 percent year-on-year to P23.3 billion with the reinstatement of full mall rental rates, the contribution of new leasing spaces, and higher hotel room rates.
Capital expenditures reached P44.7 billion, of which more than half were spent on residential projects, 10 percent on commercial projects, 14 percent on land acquisition, 17 percent on estate development and 4 percent for other purposes.