Major property developer Ayala Land Inc. of the Ayala Group booked a net income of P3.2 billion in the first quarter of the year, up 14 percent year-on-year, on strong on the strong rebound of malls and hotels businesses.
Ayala Land said in a disclosure to the stock exchange Thursday consolidated revenues were steady at P24.6 billion as the uptick in commercial leasing business was offset by the slight contraction in property development.
Minus one time gain from the sale of its stake in hospital unit Qualimed to Ayala Corp. in the first quarter of 2021, revenues and net income rose six percent and 77 percent, respectively.
“The greater mobility in the 1st quarter resulted in an immediate positive impact on our overall business. Notable was the turnaround and higher customer patronage of our malls, hotels, and resorts,” said Ayala Land president and chief executive Bernard Vincent Dy.
“We expect the positive trend to continue as the health crisis abates, people increasingly return to their pre-pandemic consumption patterns, and business and leisure travel gain momentum.” he added.
Property development revenues in the first three months preached P15.9 billion, down two percent from P16.2 billion in the same period last year, mainly due to lower residential bookings.
Sales reservations totaled P24.1 billion, or equivalent to monthly average sales of P8 billion.
The company launched seven new projects in the first quarter of the year with a total value of P17 billion
Commercial leasing revenues, meanwhile, grew 26 percent to P6.4 billion from P5.1 billion after benefitting from the reopening of the economy.
Revenues from shopping centers surged 49 percent to P2.9 billion from P2.1 billion on year due to higher mobility and tenant sales as the country shifted to less strict quarantine restrictions.
Office leasing revenues remained strong, growing seven to P2.7 billion from P2.5 billion while, hotel and resort revenues improved 29 percent to P823.4 million due to increased domestic travel and higher room rates.
Ayala Land said it remains confident in the market and is poised to launch P100-billion worth of residential inventory this year.
The property firm is also set to introduce four master-planned estates in the country to increase its presence, add new products for communities and businesses and support the economy’s reopening.