Real estate giant Ayala Land Inc. (ALI) posted a 34% jump in consolidated net profit to 6 billion pesos in the first half of the year, as revenue rose 19% to 49 billion of pesos.
In a disclosure to the Philippine Stock Exchange, the company said it saw significant improvements in performance compared to the first half of 2020 when the pandemic began.
In the second quarter alone, revenue and net profit reached 24.3 billion pesos and 3.3 billion pesos, up 90% and 16.6 times over the same period last year, respectively.
Revenue from ALI’s real estate development increased 37% to 34.1 billion pesos for the period, propelled by construction progress as well as higher sales bookings.
Second-quarter sales bookings totaled 19.7 billion pesos, a substantial 45% growth over the same period last year, as local demand remained strong despite the reimposition of the ECQ from March to April .
This brought first-half sales bookings to 48.2 billion pesos, up 26% from last year.
âThe pandemic continues to create an extremely difficult environment for the majority of our industries,â said Bernard Vincent O. Dy, President and CEO of ALI.
He noted that âthe improvement in our performance in the first half of the year was mainly due to our property development activity, with residential demand showing resilience and construction progress leading to revenue recognitionâ.
“While it may take some time for our economy to fully reopen, especially with the reimposition of the ECQ in the NCR, we are proactively launching new projects and making sure we have an adequate inventory to serve market segments that are showing stability, âDy added.
Ayala Land budgeted 100 billion pesos for residential launches in 2021. In the first half of the year, she launched 14 projects with a total value of 44.3 billion pesos.
Commercial rental income was weighed down by further restrictions, as revenue fell 26% to 9.5 billion pesos in the first half of 2021.
Revenues from shopping centers also fell 43% to 3.4 billion pesos, reflecting limited operations and ongoing rent cuts to support tenants.
Office rental income totaled 4.8 billion pesos, a very slight improvement over last year as business process outsourcing and headquarters operations cushioned the impact of POGO cancellations.
Revenues from hotels and resorts, meanwhile, ended down 42% to 1.2 billion pesos, as resort operations were restricted from late March to April.
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