Ayala Land Inc. is optimistic it could rebound to pre-pandemic performance in two to three years as the economy rises from the pandemic.
This follows after the company reported profit of P12.2 billion, up 40 percent from P8.71 billion.
Ayala Land profit stood at P33 billion in 2019. Revenues last year reached P106.1 billion, up 10 percent from P96.54 billion.
The company said it benefitted from a “resilient operations amidst the ongoing pandemic.”
Bernard Vincent Dy, Ayala Land president, said the company expects a varied recovery speed from its various businesses.
“As the economy moves to full reopening in 2022, we look forward to the acceleration of our business activity backed by our landbank, diversified portfolio, and market-leading estate developments,” he said.
The company, however, is ready to fund growth-driving initiatives as it readies to spend P90 billion as capital expenditures this year, up from P64 billion last year. It plans to launch P100 billion-worth of project this year.
Augusto Bengzon, Ayala Land chief finance officer, said the company is looking to tap into the debt market for a P10 billion six-year bonds in May to be followed by a similar amount to be raised in June for a still to be determined tenor.
The company is also in talks with partner banks for a P20-billion loan, said Bengzon.
The company reported its property development revenues hit P75.9 billion, up 14 percent as construction progressed and revenues were booked from projects.
“Most of the revenue buildup commenced in the fourth quarter as it grew 40 percent to P24.4 billion from the third quarter,” the company said.
Sales reservations reached P92.2 billion, up 13 percent, mainly from solid demand for lots in Southern Luzon by Ayala Land Premier and Alveo.
“Sales reservations from lot sales alone jumped 36 percent to P41.5 billion during the year. In the fourth quarter, sales grew 5 percent to P22.1 billion from the same period in 2020,” the company said.
Ayala Land said it launched 22 projects last year worth P75.3 billion, seven times more than in 2020.
Commercial leasing revenues meanwhile hit P20.6 billion, down 5 percent, as malls, hotels, and resort operations remained limited for most of the year.
“Shopping center revenues declined 13 percent to P7.9 billion, and hotel and resorts revenues decreased by 12 percent to P2.8 billion. Office leasing revenues increased 5 percent from 2020 to P9.9 billion as business process outsourcing and corporate operations remained stable throughout the period,” Ayala Land said.
“Relaxed restrictions in the fourth quarter translated into higher mobility and tenant sales which boosted commercial leasing revenues by 35 percent to P6.4 billion, primarily as shopping center revenues grew 101 percent to P3.0 billion from the previous quarter and 106 percent from the same quarter in 2020,” it added.
