LISTED property developer Ayala Land, Inc. (ALI) recorded a 15% increase in its first-half net income to P13.1 billion on “robust property demand and consumer activity.”
First-half consolidated revenue increased by 28% to P84.3 billion, ALI said in a stock exchange disclosure on Wednesday.
Residential reservation sales rose by 17% to P68.4 billion led by the premium and vertical segments.
The sales growth was driven by properties such as AyalaLand Premier’s Park Villas in Makati central business district and The Courtyards Phase 3 in Vermosa, Alveo’s Park East Place in Bonifacio Global City, and Sereneo in Nuvali, and Avida’s Verge Tower 1 in Mandaluyong.
ALI launched P33.7 billion worth of projects for the first half, of which 92% were from premium brands and 52% were horizontal developments.
Leasing and hospitality revenues increased by 10% to P22.1 billion due to the higher occupancy of Ayala Malls Manila Bay, the contribution of One Ayala Mall and Offices, Ayala Triangle Tower Two, Seda Manila Bay, and the higher occupancy of Seda Nuvali and Lio.
Shopping center revenues climbed by 8% to P11.1 billion while office leasing surged by 6% to P6.1 billion. Hotel and resort revenues improved by 19% to P5 billion.
Meanwhile, ALI’s service businesses, comprised of construction, property management, and airlines, saw a 51% increase in first-half revenue to P8.4 billion.
Net construction revenue of Makati Development Corp. doubled to P5.5 billion led by additional contracts from external projects.
Boutique airline AirSWIFT, property management, and retail electricity supply companies generated revenues of P2.9 billion, up by 2% on airline sales and property management fees.
“ALI is hitting its growth targets across all business lines and market segments. Residential sales outperformed expectations. We will continue to pursue our growth trajectory with a keen eye on capital efficiency,” ALI President and Chief Executive Officer Anna Ma. Margarita Bautista-Dy said in a media briefing in Makati City on Wednesday.
“We are reinventing our assets to deliver elevated and differentiated experiences to our customers, and we will continue to bring compelling and market-shaping residential offerings to Filipino homeowners,” she added.
ALI has spent P36.5 billion in capital expenditures as of end-June, of which 51% were spent on residential projects, 27% on estate development, 11% on commercial leasing assets, and 11% on land acquisition commitments.
On Wednesday, ALI shares rose by 5.08% or P1.45 to P30 per share. — Revin Mikhael D. Ochave
