ALI profit up 13%

Property giant Ayala Land Inc. (ALI) said its net profit climbed 13 percent in 2007, boosted by non-recurring gains from asset sales.

In a financial report filed with securities regulators, ALI said net earnings reached P4.4 billion last year compared with only P3.9 billion a year earlier.

Consolidated revenues slightly went up to P25.7 billion from P25.6 billion. Operating revenues declined by three percent to P22.9 billion due to accelerated residential revenue bookings in 2006 and lack of BPO leasing revenues from the sale of its PeopleSupport building.

The drop in operating revenues, however, was offset by the company’s strong interest and other income, which increased by 25 percent to P2.1 billion.

The company booked a net gain after tax of P599 million from the sale of shares in Makati Property Ventures Inc. to Ascott Residence Trust. It also registered a recurring gain from the sale of its 16,758 preferred shares in a joint venture project with Dubai-based Kingdom Hotel Investments.

ALI, which builds upscale malls, hotels, high-rise offices and residential condominiums and villages, said its overall net operating income margin rose to 34 percent last year from 31 percent in 2006.

The residential development division registered revenues of P13 billion or 50 percent of total revenues. Shopping malls contributed P4.2 billion, accounting for 16 percent of total revenues. ALI said the net operating income of its malls dropped by one percent to P2.4 billion due to the absence of earnings from Glorietta 2, which had to be closed after being hit by an explosion in October last year.

The company’s hotels, construction and property management business pumped in P4.2 billion in total revenues.