MANILA, Philippines — Ayala Land Inc. (ALI) posted a net income of P12.2 billion in 2021, up 40 percent on account of resilient operations amidst the ongoing pandemic.
In a press conference yesterday, ALI officials said business is recovering and sees net income recovering to pre-COVID-19 levels in two to three years or by 2024.
“This is assuming full economic growth with no new (COVID) variants and other lockdowns,” said ALI president and CEO Bernard Vincent Dy.
Dy said that in 2021, ALI focused on providing the right environment in their communities for its residents, businesses, and institutional locators to adapt and function better while executing their business recovery plans.
“As the economy moves to full reopening in 2022, we look forward to the acceleration of our business activity backed by our landbank, diversified portfolio, and market-leading estate developments,” he said.
For this year, ALI is pouring in P90 billion for capital expenditures, higher than the P64 billion spent in 2021, according to ALI chief finance officer Augusto Bengzon.
ALI will tap the debt market in May to raise up to P10 billion in bonds for refinancing and another P12 billion in bonds in June or August.
The company raked in total revenues of P106.1 billion in 2021, up 10 percent, supported by relaxed quarantine restrictions in the fourth quarter.
In terms of business segments, property development revenues grew by 14 percent to P75.9 billion.
Sales reservations reached P92.2 billion, a 13 percent growth from last year, mainly from solid demand for lots in Southern Luzon by Ayala Land Premier and Alveo. Sales reservations from lot sales alone jumped 36 percent to P41.5 billion during the year. In the fourth quarter, sales grew five percent to P22.1 billion from the same period in 2020.
Reflecting confidence in the local residential market, ALI launched 22 projects worth P75.3 billion during the year, seven times more than in 2020.
On the other hand, commercial leasing revenues amounted to P20.6 billion in 2021, down five percent from a year ago as malls, hotels, and resort operations remained limited for most of the year.
Shopping center revenues declined by 13 percent to P7.9 billio while revenues from hotel and resorts decreased by 12 percent to P2.8 billion.
Nevertheless, office leasing revenues increased by five percent to P9.9 billion as BPO and corporate operations remained stable throughout the period.
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The article was originally published in PhilStar Global and written by Iris Gonzales.
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