Property developer Ayala Land Inc. said Monday net income increased 12 percent in the first half to P15.2 billion from a year ago, as the strong growth in office sales and commercial leasing businesses offset the sluggish residential sales.
ALI said in a disclosure to the stock exchange first-half consolidated revenues rose 4 percent in the six-month period to P83.2 billion from P80.39 billion a year ago.
Property development revenues rose 1 percent to P58.9 billion. Residential sales declined 11 percent to P44 billion from P50.1 billion following the full sellout and completion of successful projects by ALP and Alveo.
Sales from office-for-sale projects surged 134 percent to P10.1 billion while revenues from commercial and industrial lots climbed 11 percent to P4.3 billion. Commercial leasing revenues jumped 16 percent to P18.6 billion.
“We continue to benefit from the strong economic growth of the country. Results from our various business lines continue to be good, with notable performances in our leasing portfolio and the sales of office condominiums and commercial lots,” ALI president and chief executive Bernard Vincent Dy said.
“Moving forward, we remain positive on demand across all market segments and plan to increase the level of product introduction in the second half of the year,” he said.
Capital expenditures reached P49.5 billion in the first half to sustain its residential and leasing asset buildup.
Sales reservations remained steady at P72.3 billion as Filipino buyers continued to drive demand and comprised 70 percent of the total buyers. This was supplemented by sales from overseas Filipinos comprising 13 percent while sales from other nationalities amounted to 17 percent.
The company launched 13 projects valued at P19.5 billion in the first half of 2019. The company plans to ramp up launches in the second half.
Unbooked revenues increased P3 billion from the first quarter, reaching P147 billion which will be recognized in the next three to four years based on the percentage of completion.
Shopping centers revenues grew 12 percent 10.3 billion, on the back of 11-percent growth in mall revenues.
Office leasing revenues also went up 25 percent to P4.6 billion as newly-opened offices in Ayala North Exchange, Vertis North and Circuit Makati gained further traction.
The hotels and resorts segment saw a 17-percent growth in revenues to P3.7 billion.
“We continue to build our nationwide footprint as we gear up to launch estates in Batangas and Tarlac. Our best in class landbank of over 11,000 hectares is strategically positioned in the most progressive areas in the country and will support our long-term growth objectives,” said Dy.