Property demand drives Ayala Land income up 39% to P6.3B

LISTED property developer Ayala Land, Inc. (ALI) recorded a 39% jump in its first-quarter net income to P6.3 billion, led by stronger property demand and consumer activity.

The company’s consolidated revenues improved by 33% to P41 billion, ALI said in a statement to the stock exchange on Wednesday.

“Our first-quarter performance reflects our commitment to delivering on our operational targets this year, focused on high-value market opportunities and our drive for quality,” ALI President and Chief Executive Officer Anna Ma. Margarita Bautista-Dy said.

“Anchored on the resiliency of the local property market and consumer activity, we look forward to executing our plans to support our growth aspiration for 2024,” she added.

Property development revenue increased by 47% to P25 billion, led by residential and commercial lot bookings.

Residential revenue went up by 51% to P21.4 billion, while revenue from commercial and industrial lots jumped 59% to P2.8 billion.

Office-for-sale revenue dropped by 26% to P826 million as the lower incremental percentage of completion of the projects offset the sales bookings during the quarter.

Residential reservation sales increased by 20% to P33.3 billion, carried by strong demand for products in the premium and vertical segments.

“The quarter’s sales performance translated to a monthly sales average of P11.1 billion — an acceleration from P9.5 billion in 2023,” ALI said.

ALI launched four projects worth P13.7 billion in the first quarter. These include horizontal developments such as Alveo’s Sereneo in Nuvali, Laguna, and Caleia in Vermosa, Cavite, and Amaia’s Scapes Rizal Sector 2B and Scapes San Fernando Sector 2 in Pampanga.

Leasing and hospitality revenue surged by 8% to P10.9 billion, led by higher mall occupancy, increased mall, office, and hotel rental rates, and the contribution of new Seda hotel rooms at Manila Bay and Nuvali.

Shopping center revenues increased by 9% to P5.5 billion, while office leasing rose by 5% to P3.1 billion. Hotel and resort revenues accelerated by 8% to P2.3 billion.

Meanwhile, ALI’s service businesses consisting of construction, property management, and airline saw a 42% revenue growth to P4.2 billion.

Net construction revenues of Makati Development Corp. grew by 75% to P2.6 billion due to additional contracts from external projects.

“Property Management, AirSWIFT, and retail electricity supply companies generated revenues of P1.5 billion, a 7% increase year on year, mainly from higher parking and airline passenger revenues,” ALI said.

Capital expenditures totaled P18.8 billion, wherein 49% was spent on residential projects, 30% for estate development, 9% for land acquisition, 11% for commercial leasing projects, and 1% for other purposes.

On Wednesday, ALI shares improved by 4.91% or P1.30 to P27.80 per share. — Revin Mikhael D. Ochave