Property developer Ayala Land Inc. said Tuesday net income grew 12 percent in the first nine months to P23.2 billion from P20.7 billion in the same period last year despite the weak revenue growth due to a decline in residential sales.
ALI said in a disclosure to the stock exchange the nine-month revenues rose 2 percent to P121.7 billion as residential sales went down by 9 percent to P67.89 billion from P74.5 billion.
Local homebuyers drove residential sales comprising 70 percent of the total while overseas Filipinos accounted for 14 percent. Demand from other nationalities took up the balance of 16 percent.
Residential launches in the first three quarters reached P57.3 billion, representing a little over half its target P111-billion launches for the full year.
“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. We, however, launched more developments during the period, which we anticipate will help us finish strong in 2019 and provide positive momentum in 2020,” ALI president and chief executive Bernard Vincent Dy said.
“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,” Dy said.
Sales reservations remained steady at P108.5 billion, fueled by the growth in sales reservations of Alveo and Avida projects.
Revenues from commercial leasing business rose 16 percent to P27.6 billion with shopping centers registering a growth of 10 percent to P15 billion and office leasing growing 26 percent to P7.2 billion.
Capital expenditures reached P78.2 billion in the nine-month period, supporting the continued residential and leasing asset build-up.
Malls and offices expanded their gross leasable area to 2.1 million and 1.2 million square meters, respectively.
The property firm recently launched two new mixed-use estates. These are the 120-hectare Broadfield Estate in Biñan, Laguna and the 11-hectare pocket urban development The Junction Place in Quezon City. It plans to launch a new estate in Tarlac this month, bringing its total estates to 29 by the end of the year.
ALI plans to raise P10 billion this November from the issuance of fixed-rate bonds. Proceeds will be used to fund land acquisitions, finance developments such as One Ayala Avenue in Makati City and the Ayala Malls Vermosa in Cavite and provide for the revitalization of existing sites such as Glorietta and Greenbelt malls in Makati.
