Real estate developer Ayala Land Inc. (ALI) announced on Tuesday that its January-September attributable income rose more than 50 percent to P13.34 billion from P8.58 billion last year as the Business and consumer activity accelerated.
Consolidated revenue for the period increased 19 percent to P86.31 billion from P72.6 billion last year.
For the third quarter alone, the company reported net income of P5.26 billion, double last year’s P2.54 billion, while consolidated sales reached P32.97 billion, up 39 percent previous 23.64 billion p.
“The acceleration in business and consumer activity during the period enabled us to deliver significant revenue growth,” said Bernard Vincent O. Dy, President and CEO of Ayala Land.
“Demand for our residential products has remained robust and local consumption remains robust despite geopolitical and macroeconomic challenges. We believe the strength of our local market will provide the backbone to sustain the growth of our diversified real estate portfolio for the remainder of the year.”
The company’s real estate development revenue rose 7 percent to 55.2 billion pesos, led by commercial land sales and construction progress on its residential projects.
For the nine months, commercial real estate revenue increased 82 percent to P7.5 billion on strong investor demand in Nuvali, Arca South and South Coast City, while residential real estate revenue increased 2 percent to P45.6 billion.
Revenue from sales of offices fell 26 percent to P2.1 billion due to the completion of Alveo’s Park Triangle Tower at BGC and a modest decrease in remaining inventory.
Demand for Ayala Land’s residential products remained resilient as the company recorded booking sales of 77.3 billion pesos, up 10 percent year-on-year. Sales by local Filipinos accounted for 65 percent of total sales, overseas Filipinos accounted for 22 percent, and other nationalities accounted for 13 percent.
The most coveted projects during this period were Ayala Land Premier’s Ciela at Aera Heights in Carmona, Cavite and the Parklinks North Tower in Quezon City, Amaias Skies Cubao Tower 3 in Quezon City and Avidas Serin East Tower 4 in Tagaytay City.
The company launched eight new projects worth Pta 25 billion in the third quarter, bringing the total to 20 projects valued at Pta 60 billion in September.
Commercial leasing revenue rose 64 percent year-on-year to 23.3 billion pesos, driven by the reinstatement of full mall rental rates, the contribution of new rental space and higher hotel room rates.
Capital spending reached P44.7 billion, of which more than half was spent on residential projects, 10 percent on commercial projects, 14 percent on land acquisition, 17 percent on land development and 4 percent on other uses.