Ayala Land 6-month earnings down 19%

MANILA, Philippines — Property giant Ayala Land Inc. (ALI) saw its first-half earnings fall by nearly a fifth to P11.5 billion as its property development business navigated a challenging operating environment.

In a disclosure on Monday, ALI said its net income had declined by about 19 percent from P14.2 billion in the same period last year.

READ: Ayala Land Q1 profit drops to P5.4B

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“Supported by our integrated estate model and diversified platforms, we are confident in ALI’s ability to deliver sustainable growth and remain well positioned for the opportunities ahead,” ALI president and CEO Anna Ma. Margarita Bautista-Dy said.

The property developer nevertheless saw an improvement in the second quarter, when net income reached P6.1 billion, up 13 percent sequentially from the first quarter. Second-quarter revenues stood at P37.5 billion.

This brought ALI’s revenues in the first six months of the year to P75 billion.

“We are building a more resilient Ayala Land through disciplined capital allocation, a growing recurring income base and a strong balance sheet,” Dy said.

Property development revenues reached P41 billion during the period, with second-quarter revenues at P20.6 billion. Sales reservations amounted to P53.5 billion in the first half.

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ALI said it remained on track with deliveries across 40 projects, with nearly 6,000 residential units turned over so far.

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Residential inventory improved to 15 months from 18 months in the first quarter, indicating a faster-moving market.

Meanwhile, leasing and hospitality revenues grew 9 percent to P25.2 billion.

Shopping center revenues rose 4 percent to P12 billion, supported by higher occupancy, foot traffic and merchant sales.

Hospitality revenues jumped 28 percent to P6.3 billion, while the office segment generated P6 billion.

ALI subsidiary AREIT Inc., meanwhile, reported P5.8 billion in first-half net income, excluding the net fair value change in investment properties, up 36 percent. Its assets under management reached P159.4 billion during the period.

ALI is further expanding AREIT after its board approved the infusion of four malls and three hotels worth a combined P20 billion. This is expected to raise its assets under management to P179 billion. INQ