Ayala Land profit 15% up amid high demand

Ayala Land Inc. (ALI), the real estate arm of the Ayala Group, has logged a strong financial growth for the first nine months with a net income of P21.2 billion, representing a 15 percent increase a year ago.

Supported by steady demand in the property market, ALI’s total revenues grew 27 percent to reach P125.2 billion.

The company’s property development sector saw a 34 percent increase in revenues, totaling P76.6 billion.

“We are pleased with the solid results delivered across our business lines,” ALI President and CEO Anna Ma. Margarita Bautista-Dy said on Wednesday.

“With signs of market headwinds clearing, we look forward to delivering high-quality products to our stakeholders.”

Strong sales jump

Residential revenue rose 35 percent to P64.2 billion, while sales from commercial and industrial lots jumped 51 percent to P10.4 billion. Office-for-sale revenues were P2.0 billion for the period.

Residential sales reservation, on the other hand, grew by 17 percent to P100.5 billion, driven by demand in the premium market, with monthly sales averaging P11.2 billion compared to last year’s P9.5 billion.

To date, ALI launched P45.6 billion worth of projects, split almost evenly between vertical and horizontal projects.

Key third-quarter launches included AyalaLand Premier’s Orchard Vistas at Anvaya Cove in Bataan, Ayala Greenfield Estates in Calamba, Laguna, Avida’s Sentria Storeys Vermosa in Cavite, and the second tower of Amaia Skies Sta. Mesa in Manila.

Leasing and hospitality revenues rose by 8 percent to P33.2 billion, boosted by new assets like One Ayala Mall, Ayala Triangle Gardens Tower Two and Seda Manila Bay.

Shopping center and office leasing revenues each rose 7 percent, totaling P16.7 billion and P9.4 billion respectively. Hotel and resort revenues were up 13 percent to P7.1 billion.

ALI’s service businesses, including construction and property management, saw a 54 percent revenue increase to P12.8 billion.

Makati Development Corp.’s construction revenues nearly doubled to P8.5 billion due to more external contracts, while property management grew 9 percent to P4.3 billion.

ALI’s capital expenditures for the period totaled P51.9 billion, with 49 percent spent on residential projects, 27 percent on estate development, 13 percent on leasing and hospitality assets, and 11 percent on land acquisition.

The company maintained a stable financial position with a net gearing ratio of 0.70:1 and an interest coverage ratio of 5.3x.

Last month, ALI declared second-half dividends of P0.2913 per share, totaling P4.3 billion, which brought its full-year dividends to P0.4963 per share, or P7.4 billion.

Along with P6.5 billion in share buybacks as of September, ALI has returned a total of P13.9 billion to shareholders, representing 57 percent of its previous year’s net income.