Ayala Land Inc. (ALI) reported a 14 percent improvement in net income to P3.2 billion in the first quarter of 2022 from P2.78 billion in the same period last year, supported by continuing cost-efficiency measures amidst the pandemic.
In a disclosure to the Philippine Stock Exchange, the firm said consolidated revenues was flat at P24.6 billion, reflecting the slight contraction in property development and the resurgence in commercial leasing during the first quarter of this year.
Factoring out the sale of its stake in Qualimed to Ayala Corporation in the first quarter of 2021, revenues and net income grew 6 percent and 77 percent, respectively.
“The greater mobility in the first quarter resulted in an immediate positive impact on our overall business. Notable was the turnaround and higher customer patronage of our malls, hotels, and resorts,” said ALI President and CEO Bernard Vincent O. Dy.
He added that, “We expect the positive trend to continue as the health crisis abates, people increasingly return to their pre-pandemic consumption patterns, and business and leisure travel gain momentum.”
Capital expenditures reached P14.0 billion in the first quarter of 2022, mainly for residential developments, followed by commercial leasing assets.
About 54 percent was spent on residential projects, 7 percent on commercial projects, 14 percent on land acquisition, 23 percent on estate development, and 2 percent on other purposes.
ALI remains confident in the market and is poised to launch P100 billion worth of residential inventory this year, equally split between horizontal and vertical offerings.
The Company is set to introduce four master-planned estates in the country to increase its presence, add new products for communities and businesses, and support the economy’s reopening.
Property development revenues reached P15.9 billion in the first quarter of 2022, a 2 percent dip from P16.2 billion in the same period last year. ALI received a strong take-up for commercial lots but recorded lower residential bookings during the quarter.
Sales reservations totaled P24.1 billion which is equivalent to monthly average sales of P8.0 billion, higher than P7.7 billion in 2021. The first-quarter sales take-up is also 9 percent more than P22.1 billion in the fourth quarter of 2021.
Ayala Land launched seven projects with a total value of P17.0 billion in the first quarter of 2022. These were in Carmona, Cavite; Morong, Bataan; Nuvali, Laguna; Pasay City; Tagaytay City, Cavite; and Iloilo.
Commercial leasing revenues totaled P6.4 billion, up 26 percent from P5.1 billion, as it benefitted from the reopening of the economy.
Revenues from shopping centers accelerated 49 percent to P2.9 billion from P2.1 billion due to higher mobility and tenant sales as the country transitioned to less strict quarantine restrictions.
Office leasing revenues grew by 7 percent to P2.7 billion from P2.5 billion as tenancy and operations remained stable.
Meanwhile, hotel and resort revenues improved 29 percent to P823.4 million from P640.4 million because of increased domestic travel and higher room rates.
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The article was originally published in Manila Bulletin and written by James A. Loyola.
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