AYALA Land, Inc. (ALI) reported a 54% increase in net profit to 3.6 billion pesos in the fourth quarter after revenue rose 2% to 33.5 billion pesos quarter on quarter. the other.
“Our goal in 2021 was to ensure that we provide the right environment in our communities for our residents, businesses and institutional locators to adapt and perform better while executing our business resumption plans,” said President and CEO. from ALI management, Bernard Vincent O. Dy. in a disclosure to the stock exchange on Tuesday.
The company said its operations have remained resilient despite the pandemic. Real estate development revenue increased 40% quarter-on-quarter to 24.4 billion pesos.
Meanwhile, income from commercial leases soared 35% to 6.4 billion pesos. The growth was driven by improved shopping center revenues to 3 billion pesos, 101% better than the previous quarter and 106% growth compared to the same period in 2020.
Revenue from hotels and resorts also soared to 981 million pesos, up 55% from third-quarter results and 62% year-on-year.
For 2021, ALI recorded a net profit after tax of 40% attributable to shareholders, generating 12.23 billion pesos against 8.73 billion pesos in 2020. Its total revenues also increased by 10% to reach 106.14 billion. pesos against 96.27 billion pesos a year ago. .
The company’s real estate development revenue for the year was propelled by its performance in the fourth quarter, rising 14% to 75.94 billion pesos in 2021 from 66.64 billion pesos in 2020.
Sales bookings for the year rose 13% to 92.2 billion pesos due to “strong demand” seen in Ayala Land Premier and Alveo lots in South Luzon, with fourth quarter sales having increased by 5% year-on-year to reach 22.1 billion pesos.
The company reported that its lot sales bookings jumped 36% to 41.5 billion pesos in 2021.
Last year, ALI launched 22 residential projects with a collective value of 75.3 billion pesos, seven times more than the projects launched in 2020.
Meanwhile, revenue from commercial leases edged down 5% year-on-year to 20.6 billion pesos. Shopping malls, hotels and resorts were restricted as the country continued to impose pandemic restrictions.
Revenue from shopping centers fell 13% to 7.92 billion pesos from 9.06 billion pesos in 2020, while revenue from hotel and resort activities fell 12% to 2.83 billion pesos from 3.21 billion pesos.
However, the company saw a 5% growth in office rental revenue, from 9.41 billion pesos to 9.88 billion pesos, thanks to business process outsourcing (BPO) operations and companies .
ALI’s capital expenditure (capex) amounted to P64 billion in 2021, of which the majority or 52% was spent on residential projects, 17% on land acquisition, 15% on commercial projects and 14% for property development.
“As the economy prepares to fully reopen in 2022, we look forward to the acceleration of our business activity supported by our land bank, diversified portfolio and market-leading property developments,” Mr. Dy.
ALI remains “very positive” in its outlook this year for all its business segments, it announced at an analyst conference on Tuesday.
The company plans to launch projects worth 100 billion pesos this year. He is also considering more property developments after the pandemic ‘highlighted’ the benefits of ‘estate living’.
For 2022, the company has reserved 90 billion pesos for its capital expenditure. Of the budget, 49% will be allocated to residential developments, 19% to land acquisitions, 18% to real estate developments, 5% to shopping centres, 2% to offices, 2% to hotels and resorts, and the remaining 5% to other projects. .
Shares of ALI on the stock exchange closed unchanged at P39 per share on Tuesday. — Keren Concepcion G. Valmonte