Ayala Land Q1 profits up 25% at P3.46 billion

Ayala Land, Inc. (ALI) said profit for the first quarter of the 2014 reached P3.46 billion, 25 percent higher than last year’s P2.77 billion due to strong growth in property development, commercial leasing, as well as services business. Bernard Vincent Dy, ALI president said growth will be sustained by continuous development in mixed-use estates. Consolidated revenues reached P22.75 billion, up 22.86 percent from the previous year’s P18.52 billion.

Property development revenues, which include the sale of residential lots and units, office spaces, as well as commercial and industrial lots, reached P13.47 billion, 12 percent higher than the P12.06 billion in 2013. Jaime Ysmael, ALI chief finance officer said reservation sales stood at P21.3 billion, 9 percent higher than last year. Revenues from the residential business grew 36 percent reaching P11.02 billion, driven by projects from ALI’s five residential brands, including ALP’s Garden Towers at Makati, Alveo’s Verve at Bonifacio Global City, Towers 3 and 4 of Avida Centera at Mandaluyong , Amaia Steps NUVALI, and BellaVita Alaminos.

Combined revenues for shopping centers, office and hotels and resorts operations amounted to P5.28 billion, 29 percent higher than the P4.09 billion last year. Revenues from shopping centers went up 16 percent to P2.84 billion P2.45 billion. Lease rate is at a monthly average of P1,163 per square meter with occupied gross leasable area (GLA) up 11 percent. “We recently opened Fairview Terraces in Quezon City which also houses Wellworth, our first department store venture in partnership with the Rustan’s group. This adds about 57,000 square meters of leasable space to our portfolio of malls and supports our plan to grow the recurring revenue- generating side of the business,” said Dy.

Revenues from office leasing operations increased 49 percent at P1.06 billion from P711 million last year. Total occupied BPO GLA expanded to 424,529 square meters as of the end of March 2014, an increase of 14 percent from last year. Ayala Land Offices’ recently launched Alabang Town Center Corporate Center which offers a total of 19,000 square meters of work space intended for BPO companies. ALI’s hotels and resorts business meanwhile grew 47 percent to P1.37 billion from P931 million last year, primarily driven by improved performance of new hotels and resorts. ALI said a 150-room Seda Hotel NUVALI with lake-side views and easy access to shopping and outdoor sports facilities opened in March, adding to its current hotels located at Bonifacio Global City, Centrio Cagayan de Oro, and Abreeza Davao.

Source:  Malaya