Ayala Land sees ‘softer’ 9-mo financial results
Ayala Land Inc. (ALI) saw growth momentum slow in the first nine months, with its earnings nearly flat as weaker property development sales dampened other operations.
The group told the local bourse on Monday that its net income was almost flat at P21.4 billion from P21.2 billion a year ago.
Consolidated revenues in the period were down by 2.7 percent to P121.8 billion from P125.2 billion a year earlier.
Revenues from its property development business reached P75.9 billion, slightly lower than the P76.6 billion booked in the same period last year.
Although its residential performance booked “softer” figures, the segment saw steady bookings for its premium residential and core residential.
Combined revenues from the sale of offices and commercial and industrial lots (C&l) went up by 3 percent to P12.8 billion, supported by robust sales in the first half and bookings at Makati central business district, Vertis North and Arca South.
It noted that total sales reservations for residential products and C&l lots edged up 3 percent to P111.7 billion.
Meanwhile, its leasing and hospitality business posted a 6-percent growth at P35.1 billion, thanks to an additional boost from new malls and a higher office and hotel occupancy rate.
“Ayala Land continues to navigate market challenges with discipline and focus,” said ALI president and chief executive officer Anna Ma. Margarita Bautista Dy.
“We remain committed to expanding our leasing portfolio, enhancing property development fundamentals, and driving disciplined execution and capital efficiency,” the official added.
Capital spending for the January to September period hit P65.5 billion, with 40 percent spent on residential projects.
In August, the International Finance Corp. said it would provide a second sustainability-linked loan of up to P12.87 billion to Ayala Land, helping the latter finance the development of Greenbelt 1 in Makati City and Ayala Malls Evo City in Cavite.
These are two large-scale commercial projects with an estimated gross leasable area of 89,000 square meters.
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