Property developer Ayala Land Inc. on Wednesday reported income in the first half of the year rising 41 percent to P11.39 billion from last year’s P8.08 billion.
Revenue for the period rose 24 percent to P66 billion from P53.33 billion.
In the second quarter alone, its net earnings reached P6.9 billion as revenue hit P35.1 billion.
“Our notable performance in the first half of 2023 reflects the sustained resilience of the property market and strong consumer activity in the geographic areas where we operate,” said company president and CEO Bernard Vincent O. Dy.
Ayala Land’s property development revenue grew 13 percent to P38.7 billion from higher residential project completion, bookings, and sales of commercial and industrial lots and office units.
Anna Ma. Margarita B. Dy, Ayala Land executive vice president, said the business sustained cancellations, mainly on its office products sold by Alveo.
“The impact of cancellation is 10 percent of our property development revenue. Obviously, because the revenue has also increased, then the impact in terms of absolute value also increased. And this quarter we experienced, I guess, a bit higher cancellations on the office for sale products,” she acknowledged.
Residential revenue increased 14 percent to P31.2 billion, while office-for-sale revenue rose 44 percent. Revenue from commercial and industrial lots totaled P5.4 billion, flat from last year.
Property development revenue in the second quarter totaled P21.7 billion, a 27 percent increase from a quarter earlier.
Residential sales reservations in the first half increased 18 percent to P58.3 billion as second-quarter sales reached P30.6 billion or 10 percent more than the previous quarter.
Sales were driven by Alveo’s Park East Place in BGC, AyalaLand Premier’s Ciela in Carmona, Cavite, Arcilo in Nuvali, Laguna, and Parklinks South Tower in Quezon City, and Avida Towers Makati Southpoint.
Commercial leasing revenue improved 39 percent to P20.2 billion due to higher occupancy and rents. Shopping center revenue surged 49 percent to P10.2 billion while office leasing revenue increased 8 percent to P5.8 billion.
Hotel and resort revenues rose 79 percent to P4.2 billion. Commercial leasing revenue totaled P10.1 billion in the second quarter, unchanged from a quarter earlier.
Capital expenditures reached P38.7 billion, wherein 55 percent was spent on residential projects, 11 percent on commercial projects, 15 percent on land acquisition, 14 percent on estate development and 3 percent on other purposes.
