Ayala Land nets P2.8 B in Q1

AYALA Land Inc., the listed property giant of the Ayala Group, reported a net income of P2.8 billion for the first quarter of the year, down 36 percent from a year ago on revenues of P24.6 billion, which showed a 13 percent decline year-on-year. 

Residential business improved and so did commercial leasing but difficulties remain because of the pandemic, ALI president and CEO Bernard Vincent Dy. 

“We continue to work through the difficulties of the pandemic with an eye toward full recovery in the next two to three years. Our residential business registered higher sales in the first quarter versus a year ago with new product launches gaining favorable market acceptance. Our commercial leasing businesses improved quarter-on-quarter but these are not expected to fully recover until mobility restrictions are eased. Looking at our total portfolio, we expect our capital expenditures, product launches and completions to drive our performance this year amidst the ongoing challenges caused by the pandemic,” Dy said.

In terms of revenue, ALI’s residential revenues were virtually unchanged year-on-year, ending the quarter at P13.6 billion compared to P13.8 billion in the first quarter of 2020.  Sales reservations increased 15 percent to P28.5 billion in the first quarter compared to a year ago as local demand remained robust amid the community quarantines. This was likewise an increase of 35 percent from the fourth quarter of 2020.

Revenues from the sale of office units increased 85 percent to P1.8 billion from P962 million as a result of solid bookings from developments such as ALVEO’s Park Triangle at Bonifacio Global City and Ayala Land Premier’s One Vertis Plaza at Vertis North. Revenues from the sale of commercial and industrial lots on the other hand, decelerated by 67 percent to P818.4 million from P2.5 billion on slower take up at Vermosa and Alviera estates. 

Commercial leasing revenues meanwhile, contracted 41 percent to P5.1 billion as operations of malls, hotels, and resorts remained restricted. 

Shopping mall revenues dropped 58 percent to P2.0 billion year-on-year on account of limited operations, discounted rental rates to support tenants, and low foot traffic. 

Hotels and resorts revenues likewise ended 60 percent lower to P640 million as hotel occupancy remained low while resorts were closed since the reimposition of the enhanced community quarantine in the end of March.

On the other hand, sustained BPO and HQ operations drove office leasing revenues to P2.5 billion, a two percent increase from the previous year.

In all, Ayala Land launched six projects in the first quarter with a total value of P17.4 billion. The company has budgeted P100 billion worth of project launches for 2021. 

Capital expenditures amounted to P15.3 billion for the period, equivalent to 17 percent of the P88 billion full year budget. Of the amount, 59 percent was spent on residential projects, 12 percent on commercial projects, 10 percent for land acquisition, 17 percent for the development of estates and two for other purposes.