Property developer Ayala Land Inc. said Wednesday net income in 2016 jumped 19 percent to P20.9 billion from a year ago, on the back of stable revenues from property development and leasing businesses.
Ayala Land said in a disclosure to the stock exchange consolidated revenues climbed 16 percent last year to P124.6 billion from the 2015 level.
“2016 marked another banner year for Ayala Land. We achieved a higher level of profitability coming from the sustained growth of our estates and core businesses. Further, we executed our investment program to ensure continued growth in the coming years,” Ayala Land president and chief executive Bernard Vincent Dy said.
Property development, which includes sales of residential, office, commercial and industrial lots, went up 17 percent to P79.2 billion.
Commercial leasing revenues also rose 8 percent to P26.6 billion, as its portfolio of malls, offices and hotels and resorts continued to expand within the Philippines.
Ayala Land launched P61.5 billion worth of residential and office units for sale through five residential brands such as Ayala Land Premier, Alveo, Avida, Amaia and BellaVita in 2016.
Residential sales grew 3 percent to P108.00 billion. Mall revenues increased 12 percent to P15 billion, while office leasing revenues rose 7 percent to P5.5 billion on increasing contribution of newly opened offices.
Hotels and resorts revenues grew slightly to P6.1 billion as a result of the sustained performance of established hotels and resorts, combined with the initial operations of newly built additional rooms.
“We continue to reshape our business to achieve a more sustainable level of growth by rebalancing our leasing and property development businesses,” said Dy.
“Last year, we launched a good mix of residential and commercial properties in both our established and emerging estates. In addition, our strategy remains consistent – to build sustainable communities across the country. And with the government’s thrust to increase spending on infrastructure, we also plan to accelerate the development of our estates that are closely linked to these projects,” he said.
Ayala Land plans to complete seven shopping centers with a total gross leasable space of 224,000 square meters this year, including Ayala Malls Vertis North in Quezon City, Ayala Malls Feliz in Cainta and Ayala Malls One Bonifacio High Street in Fort Bonifacio.
It also plans to complete a total of 185,000 sqm of gross leasable office space and open three new hotels under the Seda brand.