Property developer Ayala Land Inc. said Tuesday net income declined 36 percent in the first quarter to P2.8 billion from a year ago as the group’s commercial leasing business continued to be affected by the mobility restrictions brought about by the pandemic.
ALI said in a disclosure to the stock exchange first-quarter consolidated revenues fell 13 percent to P24.6 billion from the same period last year.
“We continue to work through the difficulties of the pandemic with an eye towards full recovery in the next two to three years. Our residential business registered higher sales in the first quarter versus a year ago with new product launches gaining favorable market acceptance. Our commercial leasing businesses improved quarter-on-quarter but these are not expected to fully recover until mobility restrictions are eased,” ALI president and chief executive Bernard Vincent Dy said.
“Looking at our total portfolio, we expect our capital expenditures, product launches and completions to drive our performance this year amidst the ongoing challenges caused by the pandemic,” he said.
Residential revenues were nearly flat at P13.6 billion, hosted by 85-percent increase in sales of office units.
Revenues from the sale of commercial and industrial lots dropped 67 percent to P818.4 million from P2.5 billion a year earlier on slower take up at Vermosa and Alviera estates.
Sales reservations increased 15 percent to P28.5 billion in the first quarter as local demand remained robust amid the community quarantines.
Commercial leasing revenues contracted 41 percent to P5.1 billion as operations of malls, hotels and resorts remained restricted.
Shopping center revenues dropped 58 percent to P2 billion year-on-year on account of limited operations, discounted rental rates to support tenants and low foot traffic.
Hotel and resorts revenues also dropped by 60 percent to P640 million as hotel occupancy remained low.
Revenues from office leasing inched up by 2 percent to P2.5 billion on continued demand for office space from business process outsourcing firms.
ALI launched six new projects with total sales value of P17.4 billion in the first quarter.
Capital expenditures amounted to P15.3 billion in the first quarter, equivalent to 17 percent of the P88 billion full-year budget.