STRONGER property demand and consumer activity drove property developer Ayala Land Inc.’s (ALI) net income in the first nine months of 2024 to P21.2 billion, from P18.39 billion a year ago, with consolidated revenues for the period having soared to P125.2 billion.
“We are pleased with the solid results delivered across our business lines,” ALI President and CEO Anna Margarita Bautista-Dy said.
Higher residential and commercial lot bookings brought about a 34-percent growth in property development revenues to P76.6 billion from P54.1 billion last year.
Residential revenue grew 35 percent to P64.2 billion, while revenue from commercial and industrial lots was up 51 percent at P10.4 billion.
On the other hand, revenue from the offices-for-sale segment slipped to P2 billion from P2.69 billion on lower project bookings.
Residential reservation sales increased 17 percent to P100.5 billion, driven by strong demand in its premium market, resulting in a monthly average sales performance of P11.2 billion compared to last year’s average of P9.5 billion.
“With signs of market headwinds clearing, coupled with our reinvention initiatives, we look forward to continue delivering high-quality products to our stakeholders,” Bautista-Dy said.
From January to September, ALI launched around P45.6 billion worth of projects, 51 percent vertical and 49 percent horizontal developments. For the third quarter, it launched AyalaLand Premier’s Orchard Vistas at Anvaya Cove in Bataan and Ayala Greenfield Estates Brookside Park in Calamba, Laguna.
ALI’s Avida brand also launched a mid-rise condominium project, Sentria Storeys Vermosa in Cavite, as well as the second tower of Amaia Skies Sta. Mesa in the City of Manila.
The addition of One Ayala Mall and East and West Office towers, Ayala Triangle Gardens Tower Two, and Seda Manila Bay increased ALI’s leasing and hospitality revenues to P33.2 billion from last year’s P30.76 billion.
Shopping center revenues reached P16.7 billion, office leasing stood at P9.4 billion, while hotel and resort revenues rose to P7.1 billion.
ALI’s service businesses grew 54 percent to P12.8 billion as Makati Development Corp.’s net construction revenue almost doubled to P8.5 billion from additional external project contracts.
Property management and other ancillary services showed improved revenues of P4.3 billion, attributed to airline ticket sales and property management fees.
During the nine-month period, 49 percent of ALI’s P51.9-billion capital expenditure (capex) budget was spent on the development of its residential projects; 27 percent went to estates, 13 percent was utilized on leasing and hospitality assets, while 11 percent was used for land acquisition commitments.
Last month, ALI declared a second-half dividend of P0.2913 per share, or a total payout to stockholders of P4.3 billion, bringing the full-year dividend to P0.4963 per share, or an aggregate of P7.4 billion.
As of end-September 2024, ALI had spent P6.5 billion in share buybacks and has returned P13.9 billion in capital to shareholders, equivalent to 57 percent of the prior year’s net income.
On Wednesday, ALI shares were down P1.50, or 4.35 percent, at P33 each, amid a 1.27-percent downturn for the benchmark Philippine Stock Exchange index.
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