ALI bares 10% hike in 2002 income to P2.52-B

Hardly affected by the continuing weakness in the property sector, Ayala Land Inc. (ALI) reported a 10 percent growth in its net income last year to P2.52 billion from P2.29 billion in 2001.

ALI vice-president and chief finance officer Jaime E. Ysmael said the company maintained its leading market position by sharply focusing on new niche markets and strengthening its retail rental portfolio.

Consolidated revenues increased by 4.62 percent from P11.69 billion to P12.23 billion.

Even with a lower growth in consumer spending and faced with tough competition, leasing operations continued to be the biggest revenue source, with rentals from shopping centers and office buildings pumping in P3.33 billion or 27 percent of the total.

Ayala Center posted a high occupancy rate of 96 percent and continued to account for the bulk of the rental revenues. ALI opened Greenbelt 2 and 3 in May and immediately established the area as the preferred dining and entertainment center.

The 28-unit Residences at Greenbelt was completed last December and is now being offered for lease to augment the company’s rental income. In June, ALI started to develop Market! Market!, a value mall near Fort Bonifacio.

As in previous years, Ayala Land’s office buildings for lease maintained high occupancy rates averaging 92 percent, much higher than the Makati Central Business District’s 85 percent. The firm’s office lease rates also continued to command a premium over those of competitors.

Accounting for 21 percent of total revenues or P2.58 billion were land sales, principally from residential subdivision projects such as the Verdana Homes in Cavite and Ayala Hillside Estates in Quezon City.

Targeting the core middle-income market, Verdana Homes offered a total of 457 lots in two phases and proved highly successful with a 99-percent take-up rate at the end of 2002.

Ayala Hillside Estates, a high-end residential community built around a golf course, was lauched in September and posted a year-end take-up rate of 87 percent on the 55 ALI-owned lots in the initial phase of this subdivision. Continuing investments and project enhancement boosted sales at the Ayala South communities.

Significantly adding value to Ayala Greenfield Estates was the launch in October of Ayala Greenfield Golf and Leisure Club which re-positioned the subdivision as a golf and leisure community and pushed sales take up to 80 percent of 363 lots.

At Ayala Westgrove Heights, additional phases were offered for sale during the year, bringing cumulative offering to a total of 1,094 lots, 86 percent of which was taken up by year-end. Residential unit sales, consisting of condominium, townhouse and single-detached units, contributed P1.57 billion or 13 percent of total revenues.