MANILA – Property giant Ayala Land Inc. (ALI) on Wednesday said its profit grew 21 percent to PHP25.3 billion in 2017, as property sales and leasing revenues picked up.
Its net income reached PHP20.9 billion in 2016.
Total revenues grew 14 percent to PHP142.3 billion last year from PHP124.6 billion the previous year, backed by substantial bookings and completion of its property development projects and expanding leasing business.
Supporting its healthy topline was the resurgence of property sales in 2017, recording higher growth of 13 percent to PHP122 billion, a big jump from the 3-percent growth in 2016.
ALI hastened its activities during the last quarter, ending 2017 with a total of PHP88.8 billion worth of residential and office condominium developments.
This was complemented by the growing leasing revenues, which increased by 10 percent to PHP31 billion as the new malls, offices and hotels and resorts contributed more.
“We are pleased with our 2017 business results. All major product lines posted strong growth, with property sales coming in at the higher end of our estimates and leasing income increasing in line with our planned asset build up,” said ALI President and Chief Executive Officer Bernard Vincent O. Dy.
“Sound macroeconomic fundamentals continue to support the property sector. So we believe we are well positioned to benefit from the strength of our economy,” he said.
2017 was also a landmark year as ALI completed the most number of projects which helped expand its leasing capability. The company opened five malls with a combined gross leasable area (GLA) of 189,000 square meters (sqm), bringing the company’s shopping center GLA to 1.8 million sqm.
The property firm completed six office buildings with a total GLA of 185,000 sqm, strengthening its hold in the office market segment, bringing the company’s total office GLA to 1.02 million sqm in 2017.
Its hotels and resorts business added six new facilities in its roster, including Seda Vertis North with 438 rooms, the largest hotel under its own Filipino-branded hotel chain.
As part of ALI’s innovative response to market needs, it introduced new leasing formats such as Clock In and The Flats. Clock In offers serviced offices with fully equipped and furnished spaces for start-up ventures while The
Flats offers dormitory-type lodging for office workers.
In 2017, ALI launched three new sustainable mixed-use estates set in Luzon, Visayas and Mindanao with a total area of 275 hectares.
“As we expand our footprint in key geographical areas, we plan to reach more people and be part of nation-building by creating sustainable communities that are safe and connected, mindful of the environment, and serve as thriving economic districts,” said Dy.
ALI spent PHP91.4 billion in capital expenditures in 2017 for its aggressive expansion and completion of new projects, with 48 percent of the budget allocated to residential developments, 29 percent to commercial leasing projects, and 23 percent for land acquisition and estates.