Metro Manila (CNN Philippines, November 5) — The property arm of Ayala Corporation reported a 12-percent increase in its income during the first nine months of the year, mainly driven by higher revenues from its real estate business.
Ayala Land, Inc.’s (ALI) net income jumped to ₱23.2 billion in January to September from ₱20.78 billion the prior year, as total revenues slightly grew 2 percent to ₱121.7 billion.
The listed firm attributed the growth to real estate revenues of ₱119.7 billion, supported by office, commercial, and industrial lot sales, and further boosted by the improving performance of new leasing assets.
By the end of September, revenues from ALI’s property development unit stood at ₱85.4 billion, as office for sale revenues soared 51 percent to ₱11.1 billion and commercial and industrial lots sales grew by 16 percent to ₱6.5 billion.
Growth in sales reservations of Alveo and Avida projects prompted sales reservations to remain at ₱108.5 billion during the period.
The commercial leasing segment jumped 16 percent to ₱27.6 billion, as shopping center revenues increased by 10 percent to ₱15 billion with the opening of Ayala Malls Manila Bay, Ayala Malls Feliz, Circuit Makati, and Capitol Central.
ALI’s office leasing business saw its revenues rise 26 percent to ₱7.2 billion, fuelled by the improved performance of new offices in Ayala North Exchange, Vertis North, and Circuit Makati.
For the hotels and resorts segment, the company registered a ₱5.4 billion revenue, a 17 percent improvement year on year.
“Third quarter financial results were in line with our expectations, following a similar pattern to what we have seen in the first half of the year. We, however, launched more developments during the period, which we anticipate will help us finish strong in 2019 and provide positive momentum in 2020,” ALI President and CEO Bernard Vincent Dy said.
ALI’s total launches during the nine-month period reached ₱57.3 billion, capped by the launch of ₱37.8 billion worth of residential projects in the third quarter alone.
The company said it spent ₱78.2 billion in the three months to September as its malls and office segments expanded their gross leasable area further to 2.1 million and 1.2 million square meters, respectively.
Shares in ALI stayed at ₱49 apiece Tuesday from the same price the previous day.
