Ayala Land reports 33% income growth in third quarter

Integrated property developer Ayala Land Inc. (ALI) saw its third-quarter net income grow y 33 percent to P7 billion from P5.26 billion recorded in the same period last year despite flat revenue growth.

In a statement, ALI said third quarter consolidated revenues stood at P32.28 billion on steady real estate sales of P30.8 billion. As a result, ALI’s nine-month totaled P18.4 billion, up 38 percent year-on-year while consolidated revenues reached P98.9 billion, higher by 15 percent higher year-on-year.

“The strong performance of our various business lines in the first nine months of 2023 is a testament to the continuing resilience of the residential market and vibrant consumer activity despite ongoing macroeconomic challenges. This positive trend, guided by our new focus on quality, people, sustainability, and growth, will enable us to strengthen our diversified portfolio and further enhance earnings," said ALI president and CEO Anna Ma. Margarita Bautista-Dy.

"We will continue to focus on high-value market opportunities and meeting our operating targets to sustain our momentum for the year," she said.    

Property development revenues rose 4 percent to P57.2 billion from higher residential completion, stable bookings, and office unit sales.

Residential revenues also increased by 4 percent to P47.5 billion, while office-for-sale revenues registered a 31-percent growth to P2.8 billion.

Sales from commercial and industrial lots went down by 8 percent to P6.9 billion.

Residential reservations in the first nine months increased by 11 percent year-on-year to P85.9 billion with third quarter sales reaching P27.6 billion.

It said that from January to September this year, it launched 11 new projects with total sales value of P36.3 billion.

Meanwhile, commercial leasing revenues rose 32 percent to P30.8 billion due to improving occupancy and rents.

Shopping center revenues increased by 40 percent to P15.7 billion on account of higher occupancy and rents due to healthy operations while office leasing revenues grew 7 percent to P8.8 billion due to stable occupancy and higher rents from its solid BPO and corporate tenant base.

Sales from hotel and resorts grew by 62 percent to P6.3 billion due to higher domestic business travel and local tourist activity, which pushed up occupancy and room rates.