Aug 2, 2021
Property developer Ayala Land Inc. said its income for the six months ending June 30 grew 34 percent to P6 billion from last year’s P4.51 billion.
Revenues for the period rose by 19 percent to P49 billion from last year’s P41.19 billion as the company showed significant improvements.
In the second quarter alone, revenues and net income reached P24.3 billion and P3.3 billion, up 90 percent and 16.6 times higher than the figure posted a year ago.
“Improvement in our performance in the first half of the year was driven primarily by our property development business, with residential demand showing resilience and construction progress driving revenue recognition,” Ayala Land President and CEO Bernard Vincent O. Dy said.
“While it may take some time for our economy to fully reopen, particularly with the reimposition of ECQ [enhanced community quarantine] in NCR [National Capital Region], we are proactively launching new projects and ensuring we have adequate inventory to serve market segments that are demonstrating stability.”
The company’s property development revenues grew 37 percent to P34.1 billion for the period, propelled by construction progress as well as higher sales bookings. Sales reservations in the second quarter totaled P19.7 billion, a substantial growth of 45 percent from the same period last year, as local demand remained strong despite the reimposition of ECQ from March until April. This brought first half sales reservations to P48.2 billion, up 26 percent from last year.
Ayala Land has budgeted P100 billion worth of residential launches in 2021. In the first half, it launched 14 projects with a total value of P44.3 billion.
Around eight of these projects were launched in the second quarter and these include Anvaya Cove S3 in Morong, Bataan by Ayala Land Premier and Bayview Heights in Cagayan de Oro, Misamis Oriental by Alveo.
In addition, Avida launched Averdeen Estates Phase 1 and Southdale Settings, both in Nuvali, Laguna, as well as Makati Southpoint Tower 2 and Astrea Tower 2 in Quezon City, while Amaia offered Amaia Steps Junction Place and Amaia Skies Cubao Tower 2, both in Quezon City.
Commercial leasing revenues were weighed down by renewed restrictions with revenues declining 26 percent to P9.5 billion. Shopping center revenues dipped 43 percent to P3.4 billion reflecting limited operations and ongoing rent discounts to support tenants.
Office leasing revenues totaled P4.8 billion, a very slight improvement from last year as business process outsourcing and headquarter operations cushioned the impact of Chinese online gambling operation cancellations.
Revenues from hotels and resorts meanwhile ended 42 percent lower to P1.2 billion as resort operations were restricted from the end of March until April.
Capital expenditures for the period amounted to P32.1 billion, 50 percent of which was spent on residential projects, 21 percent for estate development and 12 percent for land acquisition among other segments.
A journalism graduate and has covered the Philippine business beat for more than a decade.