Ayala Land says property mart improved in second quarter

MANILA, Philippines - Ayala Land Inc. (ALI) said sales in the second quarter showed some improvement as it noted the warm response it has received from buyers of its real estate projects.

ALI president Antonino Aquino said the company has started to infuse additional capital given the renewed interest in the property sector, particularly its projects.

“Buyers are back in the second quarter. I’d say the market is back in all fronts,” Aquino said.

He said the improvement in sales is due to an improving domestic retail base.

He, however, refused to give figures, pointing out that the company will file the necessary disclosures when needed.

In the January to March period this year, ALI’s net earnings dropped 50 percent to P907 million on lower sales and the absence of one-time gains. Consolidated revenues fell  10 percent to P7.41 billion.

In spite of its dismal first quarter results, the company assured the public that it “remains committead to complete and deliver all projects on schedule this year.”

Revenues from real estate and hotel operations declined two percent to P6.95 billion as gains posted by strategic landbank management, corporate business and shopping centers divisions 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 in the absence of bookings for high-end condominium units. One Serendra East Tower (launched in March 2008) slowed down following market uncertainties.

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 project in Laguna. – Zinnia Dela Peña