ALI grows net earnings 12% to P23.3B

ALI is allocating P130 billion for its capex budget to fund project launches this year, higher from its budget of P110.1 billion in 2018.

ALI’s property development revenues rose to P85.4 billion in the period from P82.8 billion last year, with office for sale revenue contributions rising 51 percent to P11.1 billion.

Ayala Land Inc. (ALI) booked 12 percent higher net profits in the January to September period, to P23.2 billion from P20.78 billion in the same period last year, propped up by real estate revenues particularly from the sale of office, commercial and industrial lots.

The listed developer said total revenues rose to P121.7 billion from P119.7 billion in the same three quarters in 2018, with real estate revenues accounting for the bulk of the figure at P119.7 billion.

In the third quarter alone, ALI unveiled P37.8 billion worth of residential projects, bringing nine-month project launches value to P57.3 billion. The developer earlier on said it aims to launch P130 billion worth of projects for full year 2019.

Capital expenditures for the nine-month period amounted to P78.2 billion on the back of residential and leasing asset build-up, with the mall and office segment widening gross leasable area in the period to 2.1 million and 1.2 million square meters, respectively, ALI said.

ALI is allocating P130 billion for its capex budget to fund project launches this year, higher from its budget of P110.1 billion in 2018.

“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,” ALI president and chief executive officer Bernard Vincent Dy was quoted as saying in a filing to the stock exchange on Tuesday.

“We, however, launched more developments during the period, which we anticipate will help us finish strong in 2019 and provide positive momentum in 2020. Commercial leasing assets, on the other hand, continue to outperform as business and consumer activity remain robust, and as more completed assets over the last couple of years stabilize and experience high occupancy rates,” he added.

Property development revenues rose to P85.4 billion in the period from P82.8 billion last year, with office for sale revenue contributions rising 51 percent to P11.1 billion and commercial and industrial lots contribution climbing 16 percent to P6.5 billion.

Sales reservations were steady at P108.5 billion on the back of growth in reservations of projects by ALI’s arm Alveo and Avida. In terms of market category, receipts from Filipinos still account for the bulk of ALI’s residential sales at 70 percent, followed by sales from overseas Filipinos at 14 percent and other nationalities at 16 percent.

ALI’s commercial leasing business revenues rose 16 percent to P27.6 billion, while revenues from office leasing climbed 26 percent to P7.2 billion. Hotel and resorts segment revenues also posted a 17 percent increase to P5.4 billion.