Property developer Ayala Land Inc. said Tuesday net income grew 12 percent in the first quarter on the back of strong revenues from residential and commercial leasing businesses.
ALI said in a disclosure to the stock exchange the first-quarter profit reached P7.3 billion, up from P6.51 billion recorded in the same period last year as revenues rose 7 percent to P39.7 billion from P36.97 billion.
“We continue to experience consistent growth in all our business lines. Notable was the strength of our commercial portfolio as the asset build-up over the last few years moved the business forward,” said ALI president and chief executive Bernard Vincent Dy.
“Our development business also continues to grow in line with expectations, posting a healthy increase in reservation sales due to the sustained demand from local and overseas Filipinos,” Dy said.
Sales from property development rose 4 percent to P26.1 billion in the first quarter from P25.2 billion a year earlier. Reservation sales in the three-month period also climbed 8 percent to P34.1 billion
The group’s commercial leasing business, which includes the operation of shopping centers, offices, hotels and resorts, generated total revenues of P9.2 billion, up 19 percent from P7.7 billion in the first quarter of 2018.
Revenues from shopping centers accelerated 14 percent to P5.1 billion from P4.5 billion led by the contributions of newly opened shopping centers.
Office leasing revenues reached P2.2 billion, up 27 percent from P1.7 billion in the same period in 2018 on the back of contributions of newly opened offices.
Revenues from hotels and resorts jumped 25 percent to P1.9 billion from P1.5 billion on growing contributions from recently opened Seda hotels in Vertis North, Ayala Center Cebu and Lio.
ALI operated a total of 3,018 rooms as of end-March.
The company said it started developing Habini Bay, a 526-hectare estate in Misamis Oriental which would be anchored by the 104-hectare Laguindingan Technopark, an industrial park which will be managed by Laguna Technopark Inc.
ALI plans to launch two new estates this year to add to its existing roster of 26 large-scale, mixed-use and sustainable estates across the country.