Ayala Land's Net Income Rises 14% To P3.2B
Ayala Land Inc. (ALI) generated a net income of P3.2 billion in the 1st quarter of 2022, up 14% year-on-year, supported by continuing cost-efficiency measures amidst the pandemic.
Photo Insert: Office leasing revenues grew by 7% to P2.7 billion from P2.5 billion as tenancy and operations remained stable.
ALI posted consolidated revenues of P24.6 billion, similar to the 1st quarter of 2021, reflecting the slight contraction in property development and the resurgence in commercial leasing during the period. Factoring out the sale of its stake in Qualimed to Ayala Corporation in the first quarter of 2021, revenues and net income grew 6% and 77%, respectively.
Property development revenues reached P15.9 billion, a 2% 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% more than P22.1 billion in the 4th quarter of 2021.
Ayala Land launched seven (7) projects with a total value of P17.0 billion in the first quarter of 2022. These were ALP’s Ciela Heights Phase 1A Tranche 2 in Carmona, Cavite and Anvaya Cove Seaside Point in Morong, Bataan, Alveo’s Mondia Expansion in Nuvali, Laguna, Avida’s Patio Madrigal Tower 1 in Pasay City and Serin East Tower 4 in Tagaytay City, Cavite, Amaia’s Series Nuvali S2 in Laguna and Scapes Iloilo S2A.
Commercial leasing revenues totaled P6.4 billion, up 26% from P5.1 billion, as it benefitted from the reopening of the economy. Revenues from shopping centers accelerated 49% 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% to P2.7 billion from P2.5 billion as tenancy and operations remained stable. Meanwhile, hotel and resort revenues improved 29% to P823.4 million from P640.4 million because of increased domestic travel and higher room rates.
"The greater mobility in the 1st 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.
"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," he added.
Capital expenditures reached P14.0 billion in the first quarter of 2022, mainly for residential developments, followed by commercial leasing assets. 54% was spent on residential projects, 7% on commercial projects, 14% on land acquisition, 23% on estate development, and 2% on other purposes.
ALI's balance sheet stands strong with a net gearing ratio of 0.79:1. Further, it has a well-managed debt position with an average borrowing cost of 4.2% and a maturity of 5.2 years.
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.