Ayala Land net profit up 38% thanks to improved sales

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AYALA LAND, Inc. (ALI) reported third-quarter attributable net income of 2.55 billion pesos, up 38% year-on-year from 1.85 billion pesos, its sales reflecting “sustained demand” despite renewed quarantine restrictions.

In a disclosure to the stock exchange on Wednesday, the company said its sales bookings reached 21.8 billion pesos from July to September. Its consolidated revenue grew 7% to P23.65 billion from P22.12 billion a year ago.

For the first nine months of the year, net profit attributable to ALI increased 35% to P8.59 billion from P6.37 billion, while consolidated revenue increased 15% to P72.6 billion from P63, 32 billion.

“The resumption of our activity has been maintained despite the reimposition of stricter quarantine measures last August,” said Bernard Vincent O. Dy, Chairman and CEO of ALI, in a statement.

“We remain convinced that with the reopening of the economy, commercial activity will accelerate in the fourth quarter, in particular for segments such as our shopping centers, hotels and resorts, which largely depend on increased mobility”, he added.

The company’s real estate development revenue increased 27% to 51.5 billion pesos during the period. Meanwhile, sales bookings for the first nine months rose 15% to 70.1 billion pesos, which was attributed to the company’s “strong business performance” earlier in the year.

Office rental revenues increased 5% to P7.47 billion from P7.12 billion. ALI said the growth was due to sustained business process outsourcing operations and corporate headquarters.

Meanwhile, commercial rental income for the period amounted to 14.23 billion pesos, 18 percent lower than the 17.32 billion pesos seen in the same period last year, restrictions on quarantine having been reimposed in August.

While the occupancy rate of Ayala Land’s shopping centers rose to 80% to 85%, the revenues of its shopping centers fell by 35% to 4.93 billion pesos from 7.61 billion pesos. ‘year on year due to limited operations, less foot traffic and rental discounts offered to tenants.

Revenues at its hotels and resorts also fell 29% to 1.85 billion pesos from 2.6 billion pesos due to renewed pandemic restrictions. Ayala Land said the average occupancy rate of its “stable hotels” was 50% and 51%, while the average occupancy rate of its “stable resorts” was 12% and 13%.

ALI launched a total of 18 projects in the first nine months worth 59.1 billion pesos, more than the launches seen in the year 2020 with a collective value of 10.6 billion pesos. pesos. The company said it had “responded to stronger demand in the residential market.”

In the third quarter alone, Ayala Land launched projects with a collective value of 13 billion pesos despite the quarantine restrictions.

Under Ayala Land Premier, the company launched Ayala Greenfield Estates 4C Tranche 1 in Laguna and Lanewood Hills Phase 2 in Cavite. During this time, he also opened the Centralis towers from Avida to Pasay City and the Pasig Clara stages from Amaia.

The company’s capital expenditure for the first nine months amounted to 44.7 billion pesos, of which more than half or 54% was spent on residential projects, 16% on real estate development, 14% on projects. commercial and 13% to the acquisition of land.

Ayala Land has a land bank with over 12,000 hectares of property located across the country.

The company previously listed its new 3 billion PPP fixed rate bonds with the Philippine Dealing and Exchange Corp. The issue aims to reduce the cost of its debt and extend maturities.

Ayala Land is also looking to achieve carbon neutrality by the end of the year using clean energy sources, offsetting greenhouse gas emissions through carbon forests and forest protection projects. , did he declare.

Ayala Land shares rose 3.72% or P1.30 to close at P36.25 each on Wednesday. – Keren Concepcion G. Valmonte


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