Ayala Land posts P7.3B net income in Q1, up 12%

Ayala Land Inc. saw its net income grow by 12 percent to P7.3 billion in the first quarter of 2019, driven by sustained performance of its property development and commercial leasing business.

In a disclosure to the Philippine Stock Exchange on Tuesday, Ayala Land said its total revenue stood at P39.7 billion, up 7 percent.

"We continue to experience consistent growth in all our business lines. Notable was the strength of our commercial portfolio as the asset build-up over the last few years moved the business forward.  Our development business also continues to grow in line with expectations, posting a healthy increase in reservation sales due the sustained demand from local and overseas Filipinos," Ayala Land president and CEO Bernard Vincent Dy said.

Revenue from property development reached P26.1 billion, up 4 percent from P25.2 billion. Sales reservations also grew by 8 percent to P34.1 billion.

The company's commercial leasing business, which includes the operation of shopping centers, offices, hotels and resorts, generated total revenues of P9.2 billion, up 19 percent from P7.7 billion.

Revenue from shopping centers totaled P5.1 billion, up 14 percent on the back of newly opened shopping centers such as Ayala Malls Feliz, Circuit Makati, Capitol Central, Vertis North and Cloverleaf, as well as the strong performances of Glorietta and Greenbelt malls in Makati City.

Office leasing revenue reached P2.2 billion, up 27 percent from P1.7 billion in the same period last year due to contributions from its newly opened offices such as Ayala North Exchange Towers 1 and 2, Circuit Corporate Center Towers 1 and 2, and Vertis North Corporate Center Towers 1 and 2.

Revenue from hotels and resorts reached P1.9 billion, up 25 percent from P1.5 billion with growing contributions from recently opened Seda hotels in Vertis North, Ayala Center Cebu and Lio.

The hotels and resorts business operated a total of 3,018 rooms as of the first quarter of 2019.  This was made up of rooms from its international brand segment, Seda Hotels, and resorts in El Nido and Lio among others. — BM, GMA News