ALI posts strong 32% profit growth in first quarter

MANILA, Philippines - Property giant Ayala Land Inc. opened the year strongly as its net earnings grew 32 percent in the first three months to P1.2 billion from P907 million due to robust top line growth and tight cost control measures.

In a financial report submitted to securities regulators, ALI said this was the fifth consecutive quarter that the company registered earnings growth.

“We achieved growth across all our operating businesses and this reflects the soundness of the four-pillar strategy we put in place in the second half of last year. We positioned ourselves to take advantage of the general improvement in sentiment and market activity beginning the latter period of last year and, as a result, achieved record core earnings this first quarter,” said Jaime E. Ysmael, senior vice president and chief finance officer.

Consolidated revenues rose 24 percent to P9.22 billion from P7.41 billion, largely due to improved real estate and hotel operations, which expanded 27 percent to P8.79 billion.

The company’s strong performance is attributed largely to the turnaround in revenues of the residential business and growth in all other operating businesses such as strategic landbank, shopping centers and corporate business.

Consolidated net operating income reached P2.52 billion, up 35 percent as overall NOI margins improved to 29 percent compared with 27 percent the previous year.

Residential revenues jumped 41 percent to P4.41 billion from only P3.13 billion.

Ayala Land Premier (ALP) generated revenues of 1.99 billion in the first quarter, 56 percent more than the first quarter last year, largely due to the strong take-up of high-end condominium Park Terraces in Makati City and Santierra lots in Nuvali. These two projects set new sales records when they were launched in January and recorded combined bookings of 2.78 billion in the first quarter.

ALI’s middle-income and affordable brands, Alveo and Avida, both posted 30-percent growth to 1.37 billion and 1.05 billion, respectively, as demand for more affordable products remained strong. Together with newly launched fourth brand Amaia, the company’s residential brands launched a total of 4,394 units in the first quarter, or 47 percent of the 9,275 units targeted for launch in 2010.

The company is actively establishing presence in key growth centers across the country. Last April 27, ALI broke ground for it’s Baguio-Ayala Land Technohub, envisioned to be an integrated IT community consisting of five to seven low-rise buildings and a retail area. ALI has also taken a step further in the resort and leisure segment as it recently partnered with Asian Conservation Co. (ACC), owner of the El Nido Resorts, for the development of responsible tourism destinations in Northern Palawan.