Ayala Land profit jumps 10% on premium segment boost
The continued strength of its premium segment boosted the first-quarter net income of Ayala Land Inc. (ALI) by 10 percent to P6.9 billion.
This keeps the real estate giant on track to grow its earnings twice as fast as the Philippine economy, according to its CEO.
The Zobel family-led company reported on Tuesday its consolidated revenues climbed by 6 percent to P43.6 billion. This was driven by higher bookings and leasing operations.
“Ayala Land remains firmly on track—guided by discipline, resilience and long-term perspective—even as we navigate today’s complex macroeconomic landscape,” ALI president and CEO Anna Ma. Margarita Bautista-Dy said.
ALI has set a goal of revving up its net income twice as fast than that of the Philippines’ gross domestic product this year.
Contributions from its premium projects as well as commercial and industrial lots resulted in an 11-percent gain in property development revenues. This registered at P27.8 billion.
Residential revenues ended at P22 billion, up by 3 percent. This was due mostly to growth in the premium segment, which is typically shielded from macroeconomic conditions.
Commercial and industrial lot revenues, meanwhile, more than doubled to reach P5.7 billion. This was on the back of strong sales at Arca South in Taguig City.
In the January to March period, ALI launched four projects worth P12.6 billion. Of these, around 90 percent were in the premium segment.
The newly launched projects are all horizontal developments outside Metro Manila, reflecting high demand for properties in other provinces.
Leasing revenues rose by 7 percent to P11.6 billion. ALI booked gains from its flagship malls and hospitality assets, both of which had been undergoing major renovations.
Shopping center revenues saw a 4-percent uptick to P5.7 billion on higher gains from core and emerging malls.
Office revenues likewise grew by 4 percent to P2.9 billion as occupancy levels remained high.
Capital expenditures during the quarter reached P20.6 billion. A total of 46 percent, or around P9.5 billion, was spent on building new residential projects.
Meanwhile, 30 percent (P6.18 million) went to development of infrastructure within ALI estates and 16 percent (P3.3 million) to leasing and hospitality assets. Land acquisition got 9 percent (P1.85 million).
