Property giant Ayala Land Inc. (ALI) saw profits in the first semester of 2022 jump 34 percent to P8.1 billion, propelled by the recovery of malls and hotels apart from a surge in demand for commercial lots.
Residential sales during the period, however, remained a drag as the builder provided payment leeway for buyers struggling during the pandemic.
Total revenue in the first half reached P53.5 billion, up 9 percent.
Ayala Land said the sale of commercial lots soared 166 percent to P5.3 billion amid the strong take-up in its projects Arca South, Nuvali and Vermosa.
This offset the 28-percent drop in office-for-sale units and the 9-percent decline in residential revenues to P27.4 billion. Ayala said lower residential sales were due to “stretched payment terms arising from the challenges of the pandemic.”
Residential reservation sales, an indicator of future revenues, added 2 percent to P49.3 billion.
“Strong mall and hotel recovery, resilient office leasing operations, and solid demand for commercial lots led our performance in the first half of 2022,” Ayala Land president and CEO Bernard Vincent Dy said in a statement.
“The increased economic activity has enabled our various business segments to generate quarter-on-quarter improvements and support the growth of our diversified real-estate portfolio,” he added.
The builder’s commercial leasing business saw a 54-percent recovery due to relaxed pandemic movement restrictions.
Ayala Land’s shopping mall revenue doubled to P6.9 billion as rent and tenant sales increased while office rentals rose 12 percent to P5.4 billion, mainly on the contribution of newly opened projects.
Hotels and resorts also outperformed with a 91-percent jump in sales to P2.3 billion “from increased guest patronage and higher room rates due to the resurgence of domestic tourism.”
“We look forward to sustaining our recovery for the rest of the year, anchored on the country’s stable fundamentals and new socio-economic agenda,” Dy said.
For the second quarter alone, Ayala Land said net income hit P4.9 billion, up 51 percent, as revenues rose 18 percent to P28.7 billion.
The developer said it deployed P30.2 billion in capital expenditures for the first semester, more than half going toward residential projects.
During the period, it launched 12 projects worth P34.9 billion, five of which were rolled out during the second quarter of 2022.
Capital expenditures reached P30.2 billion, wherein 54 percent was spent on residential projects, 10 percent on commercial projects, 15 percent on land acquisition, 15 percent on estate development, and 6 percent on other purposes.
Ayala Land launched 12 projects worth P34.9 billion in the first half, with five projects valued at P17.9 billion offered to the market in the second quarter. For the rest of the year, it plans to launch two master-planned estates in the country to be located “in strategic growth areas.”
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The article was originally published in Inquirer.NET and written by Miguel R. Camus.
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