Ayala Land Posts 19% Net Profit Growth in 1H 2015

Makati—(PHStocks)—Ayala Land Inc. (PSE: ALI) posted a net income of PhP8.39 billion in the first six months of 2015, which was 19% higher than last year’s PhP7.05 billion. Consolidated revenues amounted to PhP50.61 billion, which increased by 10% driven by the sustained momentum of its real estate businesses composed of property development, commercial leasing and services, which increased 10% year-on-year to PhP47.43 billion.

“We are pleased with our first half results and attribute gains to the consistent contributions of our different business units. Development continues in all our estates, with products in residential, shopping centers, offices and hotels on the rise. We are on track relative to our annual target and we plan to sustain the momentum with new launches in the coming months,” said Bernard Vincent O. Dy, ALI President and CEO.

Property development, which includes the sale of residential lots and units, and office spaces, as well as commercial and industrial lots, posted revenues of PhP31.85 billion in the first six months of 2015, 9% higher than the PhP29.30 billion reported in the same period in 2014. Commercial leasing, on the other hand, which covers the operation of shopping centers, offices, and hotels and resorts, generated total revenues of PhP11.4 billion, 10% higher than the PhP10.36 billion recorded in the same period in 2014. ALI’s wholly-owned construction and property management units generated combined revenues of PhP19.9 billion, 37% higher than the PhP14.57 billion posted in the same period in 2014.

“Building large scale mixed-use developments that are strategically located in the country’s emerging growth centers will continue to be our focus. Our residential brands continue to introduce new offerings within our estates. In our commercial business, we recently opened Ayala Malls’ Solenad 3 at Nuvali, as well as our very first Merkado supermarket at the UP Town Center. In all these developments, we are pleased with the build-up of economic activity, creating new opportunities and employment for many people,” Dy added.

Property development

ALI launched PhP54.85 billion worth of residential projects in the first six months of 2015. Reservation sales grew by 8%, reaching a total of PhP52.47 billion. Revenues from the residential segment reached PhP26.93 billion, 10% higher year-on-year driven by sustained bookings and project completion across all residential brands.

Ayala Land Premier posted revenues of PhP10.82 billion, 16% higher than the PhP9.30 billion posted in the same period in 2014, driven by bookings from its high-value horizontal projects such as The Courtyards in Imus and Dasmariñas, Cavite and Soliento at Nuvali, Sta. Rosa, Laguna, and residential building projects such as Arbor Lanes Towers 1 and 2 at Arca South, Taguig, Park Terraces at Ayala Center, Makati City, and Park Point Residences at Cebu Business Park. Alveo contributed revenues of PhP6.90 billion, 22% higher year-on-year driven by sales from Lumira at Nuvali and higher bookings from residential building projects such as Verve Residences Towers 1 and 2, Maridien Towers 1 and 2 and Park Triangle Residences, all located in Bonifacio Global City and Kroma Tower in Makati City.

Avida posted revenues of P6.60 billion, 14% higher than the PhP5.78 billion posted in the same period in 2014 driven by higher sales from Avida Towers Vita 1, 2 and 3 at Vertis North, Quezon City, Avida Towers Verte and The Montane in Bonifacio Global City and horizontal projects such South Grove Estates in Dasmariñas, Cavite and Avida Settings Alviera in Porac, Pampanga.

Amaia generated revenues of PhP1.77 billion, 23% higher than the PhP1.44 billion generated in the same period in 2014 due to higher sales of Amaia Steps at Nuvali, Amaia Skies in Shaw Boulevard, Mandaluyong City, Amaia Skies Cubao Tower 2 in Quezon City and Amaia Scapes General Trias in Cavite. BellaVita, meanwhile, more than tripled its revenues to PhP167 million from PhP47 million in the same period last year mainly due to solid bookings generated by its existing and new projects in Tayabas Quezon, General Trias, Cavite, and Alaminos, Laguna.

Steady sales of office spaces by Alveo and Avida in Bonifacio Global City, as well as commercial and industrial lots, especially at Arca South in Taguig, also contributed to total revenues.

Commercial leasing

Revenues from shopping centers reached PhP6.01 billion, 9% higher year-on-year from PhP5.52 billion due to the increased contributions of Fairview Terraces, which opened in 2013, as well as the higher occupancy and average rental rates of existing malls.

Revenues from office leasing reached PhP2.43 billion, 16% higher year-on-year from PhP2.1 billion due to the contribution of new offices and the higher occupancy and average rental rates of existing offices. Average occupancy rate increased to 92% compared to the 91% registered in the same period last year.

Revenues from hotels and resorts reached PhP2.96 billion, 8% higher year-on-year from PhP2.75 billion due to improved revenue per available room (REVPAR) performance of ALI’s internationally-branded hotels, its own SEDA hotels, and El Nido Resorts in Palawan.

Services

Revenues from construction reached PhP19.21 billion, 36% higher year-on-year from PhP14.1 billion due to the increase in projects within the Ayala Land group. Revenues from property management reached PhP688 million, 45% higher year-on-year from PhP474 million due to the increase in managed properties from completed projects.

The company has so far spent a total of PhP41.1 billion in capital expenditures for project construction and land acquisition.