Ayala Land, Inc. (ALI) posted 55% growth in net profit to 13.3 billion pesos in the first nine months of the year, as consolidated revenue rose 19% to 86.3 billion of pesos.
In a statement to the Philippine Stock Exchange, the company said the growth came as business and consumer activity accelerated amid the reopening of the Philippines economy.
In the third quarter, the company posted net profit of 5.3 billion pesos, up 107% year-on-year, while consolidated revenue reached 33.0 billion pesos, 39% higher than at the same period last year.
“The acceleration in business and consumer activity during the period allowed us to generate significant earnings growth,” said ALI President and CEO Bernard Vincent O. Dy.
He added that “demand for our residential products has remained resilient and local consumption continues to be robust despite geopolitical and macroeconomic challenges. We believe the strength of our local market will provide the backbone to support the growth of our diversified real estate portfolio for the remainder of the year.
ALI’s real estate development revenue rose 7% to 55.2 billion pesos, driven by commercial land sales and construction progress on its residential projects. A total of 21.1 billion pesos was recorded in the third quarter, representing a year-on-year growth of 21%.
In the first nine months, commercial land revenue increased 82% to 7.5 billion pesos due to strong investor demand, while residential revenue increased 2% to 45.6 billion of pesos.
Revenue from offices for sale fell 26% to 2.1 billion pesos due to the completion of Alveo’s Park Triangle tower at BGC and the moderate take-up of remaining inventory.
Despite a higher interest rate environment, demand for ALI’s residential products remained resilient, with the company recording P77.3 billion in reservation sales, 10% more than last year. Third-quarter sales totaled P28.0 billion, up 28% year-on-year.
Sales from local Filipinos accounted for 65% of the total, supplemented by overseas Filipinos and other nationalities with a share of 22% and 13%, respectively.
Sales from overseas Filipinos and other nationalities jumped 58% and 51%, respectively. ALI launched eight new projects worth 25 billion pesos in the third quarter, bringing the total to 20 projects worth 60 billion pesos in September.
In the commercial rental sector, revenue increased 64% year-on-year to 23.3 billion pesos with the restoration of full rental rates for shopping centers, the contribution of new rental spaces and the increase in rates hotel rooms.
Mall and hotel revenue more than doubled to 11.2 billion pesos and 3.9 billion pesos, respectively, while office rental revenue increased 10% to 8.9 billion of pesos. In the third quarter, ALI recorded commercial rental income of P8.7 billion, an increase of 84% compared to the same period last year.
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