Ayala Land sees sales ringing up in 2nd half
Real estate giant Ayala Land Inc. (ALI) expects its core residential business to recover in the second half of the year as it anticipates more revenue to be reflected by then.
ALI president and CEO Anna Ma. Margarita Bautista-Dy told reporters on Wednesday that they had a high residential revenue base in the first half of 2024. This resulted in a 5-percent decline this year to P41.3 billion.
Core residential revenues, or those catering to the middle-income market like Avida, slid by 17 percent. Meanwhile, the premium brands grew by 5 percent.
“This time last year, we were focused on selling our RFO (ready-for-occupancy) inventory, so a lot of those were recognized the same year that the sales were made,” Dy said during a press briefing.
“Payment terms are a little longer now, so it takes a little longer for us to recognize a sale. That contributed to the decline,” she added.
With higher take-up in the first semester, Dy said this could translate to an increase in residential revenue by the second half.
ALI launched P42.9 billion worth of projects in the January to June period. These include AyalaLand Premier’s Laurean Residences in Makati and commercial lots in Areza in Batangas province.
In a regulatory filing on Wednesday, ALI said its net income jumped by 8 percent to P14.2 billion thanks to its diversified portfolio, although the weak residential market prevented a steeper climb.
Revenues were flat at P83.1 billion.
Property development revenues inched up by 0.77 percent to P52.3 billion, driven by commercial and industrial lots.
ALI has yet to disclose its full earnings report.
Leasing and hospitality, meanwhile, improved revenues by 5 percent to P23.2 billion on higher contributions from malls and shopping centers, as well as healthy occupancy in ALI’s hotels.
“Our sales momentum is improving, and we are preparing for a busy second half with P57 billion in new property development launches, and the completion of reinvention works of malls and hotels,” Dy said.
