ALI profit up 12%

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    Ayala Land Inc. (ALI) said profit for the first nine months of the year reached P23.2 billion, up 12 percent from P20.7 billion in the same period last year.

    Revenues amounted to P121.7 billion, up 2 percent from the prior year’s P113.31 billion.

    “Growth was driven primarily by real estate revenues which stood at P119.7 billion, supported by office, commercial and industrial lot sales and further boosted by the improving performance of new leasing assets,” ALI said.

    AL launched P37.8-billion worth of residential projects in the third quarter alone, bringing its total launches for the first nine months of the year to P57.3 billion.

    “Capital expenditures reached P78.2 billion for the period supporting continued residential and leasing asset build-up with the malls and offices segments expanding their gross leasable area further to 2.1 million and 1.2 million square meters, respectively,” it said.

    “Third quarter financial results were in line with our expectations, following a similar pattern to what we have seen in the first half of the year. We, however, launched more developments during the period, which we anticipate will help us finish strong in 2019 and provide positive momentum in 2020. Commercial leasing assets, on the other hand, continue to outperform as business and consumer activity remain robust, and as more completed assets over the last couple of years stabilize and experience high occupancy rates,” said Bernard Vincent Dy, ALI president.

    ALI’s property development posted revenues of P85.4 billion, with office sales at P11.1 billion, a 51 percent increase. Sales of commercial and industrial lots hit P6.5 billion, up 16 percent.

    “Sales reservations remained steady at P108.5 billion, fueled by the growth in sales reservations of Alveo and Avida projects,” the company said.

    The commercial leasing business posted a topline of P27.6 billion, up 16 percent. Shopping center revenues grew 10 percent to P15.0 billion with the increased contribution of new malls such as Ayala Malls Manila Bay, Ayala Malls Feliz, Circuit Makati and Capitol Central.

    Revenues from office leasing also jumped 26 percent to P7.2 billion as new offices in Ayala North Exchange, Vertis North, and Circuit Makati continue to improve performance, while the hotels and resorts segment grew its revenues by 17 percent to P5.4 billion on strong patronage of Seda Ayala Center Cebu and Lio, ALI said.

    The company plans to raise another P10 billion this November from the issuance of fixed-rate bonds as it completes its funding requirements for the year.

    Proceeds from the offering will be used to fund land acquisitions, finance developments such as One Ayala Avenue in Makati and the Ayala Malls Vermosa in Cavite, as well as provide for the revitalization of existing sites such as Glorietta and Greenbelt Malls in Makati.