Ayala Land posts 31% profit growth

MANILA, Philippines - Property giant Ayala Land Inc. (ALI) reported a 31-percent growth in net income last year to P7.14 billion on robust growth across its major business lines with the launch of a record 67 projects.

At the same time, ALI announced it was ramping up its capital expenditures this year to a record P37 billion from P30 billion in 2011 as it plans to launch about 24,800 units across all residential brands.

ALI president Antonino T. Aquino said the company intends to launch the same number of projects this year but 29 percent higher in value and 20 percent more in the number of units. 

“We remain well positioned to pursue our growth moving forward and achieving the goals we set out to do under our 5-10-15 plan,” Aquino said.

Ayala Land chief finance officer Jaime E. Ysmael said this year’s capex will go to ongoing developments, new residential and leasing project launches, and new landbank acquisitions which will “help sustain the company’s growth trajectory over the coming years.”

ALI posted revenues of P44.21 billion in 2011, up 17 percent from a year ago. Bulk of revenues or P41.23 billion came from real estate and hotels, 16 percent higher than the year before figure.

“We had another banner year in 2011, thanks to the strong revenue growth and margin improvements achieved by our key businesses,” said Aquino.

Sales of residential units as well as of commercial and industrial lots amounted to P25.26 billion in 2011, 27 percent higher than the P19.85 billion recorded a year earlier.   Revenues from the residential segment rose 29 percent to P24 billion, mainly driven by the higher bookings and steady progress on construction across all residential brands.

Ayala Land Premier (ALP) generated P9.51 billion in revenues, an increase of 36 percent from 2011 level on the back of a 35 percent growth in bookings and the construction progress in projects such as Park Terraces 1 and 2 in Makati City, and Santierra and Elaro in Nuvali.

Alveo and Avida also posted year-on-year revenue growth of 15 percent and 44 percent  to P5.83 and P6.06 billion, respectively, following the strong sales of newly-launched projects such as Sedona Parc (Cebu) and Venare (Nuvali) for Alveo, and Avida Towers Centera 1 and 2 (Mandaluyong City) and the second tower of Avida Towers Cebu.

New residential brand Amaia, which caters to the affordable housing segment, pumped in revenues of P841 million, mainly due to the the full year impact of its maiden project AmaiaScapes Laguna.

ALI said sales take-up value grew 56 percent to P51.72 billion, equivalent to an average monthly sales take-up of P4.31 billion.  

The company’s four residential brands, together with fifth brand Bella Vita that caters to the socialized housing segment, rolled out a total of 20,613 units in 2011.

Meanwhile, revenues from the sale of commercial and industrial lots inched up by two percent to P1.27 billion, largely due to the sale of 14 commercial lots in Nuvali.

Commercial leasing, which includes the company’s shopping center and leasing operations, registered total revenues of to P7.46 billion in 2011, up 16 percent.

Revenues from shopping centers went up by 14 percent to P4.96 billion, driven by higher average occupancy and lease rates. Average occupancy rate across all malls reached 96 percent compared with 94 percent in 2010.

The office leasing division, on the other hand, chipped in revenues of P2.5 billion, up 19 percent due to the 22 percent increase in occupied GLA of business process outsourcing (BPO) office spaces.

Total available BPO GLA reached 315,736 square meters as of year-end, while average BPO lease rates remained steady at P580 per square meter.

The company’s hotels and resorts business recorded revenues of P2.24 billion, an improvement of 18 percent over the previous year due to the impact of the consolidation of the El Nido Resorts operations in Palawan, through the acquisition of a 60 percent stake in the Ten Knots Group in April 2010.

A total of 150 island resort rooms in Lagen, Miniloc and Apulit Island (formerly Club Noah) were added to the hotels and resorts portfolio that operates 634 hotel rooms between Hotel InterContinental Manila and Cebu City Marriott.

ALI is currently constructing its first four businessman’s hotels under its own Kukun brand in Bonifacio Global City, Cagayan de Oro, Davao, and Nuvali. The first two hotels are slated to be operational this year.