Ayala Land net income up 38% as sales improve

AYALA LAND, Inc. (ALI) reported a net income attributable worth P2.55 billion for the third quarter, up by 38% year on year from P1.85 billion, as its sales reflected “sustained demand” despite renewed quarantined restrictions.

In a disclosure to the stock exchange on Wednesday, the company said its sales reservations hit P21.8 billion in the July-to-September period. Its consolidated revenues grew by 7% to P23.65 billion from P22.12 billion a year ago.

For the first nine months of the year, ALI’s attributable net income grew by 35% to P8.59 billion from P6.37 billion, while consolidated revenues went up by 15% to P72.6 billion from P63.32 billion.

“Our business recovery was sustained despite the reimposition of stricter quarantine measures last August,” Bernard Vincent O. Dy, president and chief executive officer of ALI, said in a statement.

“We remain positive that with the reopening of the economy, business activity will gain momentum in the fourth quarter, especially for segments like our malls, hotels and resorts, which broadly rely on increased mobility,” he added.

The company’s property development revenues rose 27% to P51.5 billion in the period. Meanwhile, sales reservations for the first nine months went up by 15% to P70.1 billion, which was attributed to the company’s “strong sales performance” earlier in the year. 

Office leasing revenues inched up by 5% to P7.47 billion from P7.12 billion. ALI said the growth was driven by the sustained operations of business process outsourcing and company headquarters.

Meanwhile, commercial leasing revenues for the period were at P14.23 billion, 18% lower than the P17.32 billion seen in the same period last year as quarantine restrictions were reimposed in August.

While the occupancy rate at Ayala Land’s malls stood at 80% to 85%, revenues from its shopping centers went down by 35% to P4.93 billion from P7.61 billion year on year due to limited operations, lower foot traffic, and the rental discounts offered to tenants.

Revenues from its hotels and resorts also declined by 29% to P1.85 billion from P2.6 billion due to renewed pandemic restrictions. Ayala Land said the average occupancy rate for its “stable hotels” was at 50% and 51%, while its “stable resorts” average occupancy rate stood at 12% and 13%.

ALI launched a total of 18 projects in the first nine months worth P59.1 billion, higher than the launches seen in full-year 2020 collectively worth P10.6 billion. The company said it “responded to stronger demand in the residential market.”

In the third quarter alone, Ayala Land launched projects collectively worth P13 billion in despite quarantine restrictions.

Under Ayala Land Premier, the company launched Ayala Greenfield Estates 4C Tranche 1 in Laguna and Lanewood Hills Phase 2 in Cavite. Meanwhile, it also opened Avida’s Centralis Towers in Pasay City and Amaia’s Steps Pasig Clara.

The company’s capital expenditures for the first nine months amounted to P44.7 billion, over half or 54% of which were spent on residential projects, 16% for estate development, 14% for commercial projects, and 13% were allocated for land acquisition.

Ayala Land has a land bank with over 12,000 hectares of property located across the country.

The company earlier listed its new P3-billion fixed-rate bonds at the Philippine Dealing and Exchange Corp. The issuance is meant to bring down the cost of its debt and lengthen maturities.

Ayala Land is also looking to achieve carbon neutrality by yearend through using clean energy sources, offsetting greenhouse gas emissions via carbon forests, and projects promoting the protection of forests, it said.

Shares of Ayala Land went up by 3.72% or P1.30 to close at P36.25 each on Wednesday. — Keren Concepcion G. Valmonte