Ayala Land income down 50% in first quarter

MANILA, Philippines – Property giant Ayala Land Inc. (ALI) said its first quarter net earnings fell 50 percent to P907 million mainly due to lower revenues from residential projects.

In a financial report submitted to securities regulators, ALI said consolidated revenues declined 10 percent to P7.41 billion due to the absence of one-time gains and commercial lot sales in Cebu Business Park.

In March 2007, the company raised P762 million in pre-tax capital gains from the sale of three subsidiaries.

“We had a challenging first quarter and while we expect the market to remain volatile, our financial condition remains strong as a result of efforts to maintain liquidity and boost our cash position,” said Jaime E. Ysmael, chief financial officer of ALI.

At the same time, Ysmael assured the public that the company “remains committed to complete and deliver all projects on schedule this year.”

Revenues from real estate and hotel operations dropped two percent to P6.95 billion as gains posted by strategic landbank management, corporate business and shopping centers were offset by declines in the residential and support businesses.

Residential development accounted for 42 percent or P3.13 billion of total revenues, down 11 percent from P3.52 billion a year earlier. Despite tough challenges, revenues of ALI’s affordable and middle-income units Alveo Land and Avida Land remained steady, lower by just one percent and higher by four percent, respectively as significant progress completion on projects under construction offset the decline in new bookings.

Ayala Land Premier, the firm’s high-end residential subsidiary, registered a 24 percent decline in revenues due to lower bookings.

“There were no bookings of high-end condominium units in the first quarter of 2009 as the take-up from One Serendra East Tower (launched in March 2008) slowed down following market uncertainties,” ALI said.

High-end lots meanwhile contributed P205 million, down 59 percent from the year earlier figure with total booked sales of 29 lots, mostly from Ayala Westgrove Heights and Ayala Greenfield Estates. This was significantly lower than the 153 lots booked in the first quarter last year, mostly from Abrio in Nuvali.

Revenues of leisure project Anvaya Cove slid 54 percent to P93 million as the booked lot sales skidded to 31 from 57 a year earlier.