Ayala Land Q1 net income down 41% as ECQ hits project bookings

Property developer Ayala Land Inc. (ALI) on Monday reported a 41% decline in its first-quarter bottom line, as the enhanced community quarantine (ECQ) dragged project bookings during the period.

In a regulatory filing, ALI said its net income fell to P4.3 billion in the first quarter, while consolidated revenues fell 28% to P28.4 billion.

"The server impact of the ECQ resulting from the COVID-19 crisis and the Taal eruption caused a major decline in our net income," said ALI president and chief executive officer Bernard Vincent Dy.

"Our development business was particularly hit hard during the quarter as we saw buyers opting to defer purchases during this period. Our leasing assets were also significantly affected in the latter part of the quarter due to the ECQ," he elaborated.

The metropolis Metro Manila, along with several "high-risk areas," has been on lockdown

The government has since instructed lessors -- specifically mall operators -- to waive the rent of stores affected by the quarantine.

ALI is engaged in the planning and development of large scale, integrated estates with a mix of use for the sale of residential lots and buildings, office buildings and commercial and industrial lots, leasing of commercial and office spaces, and the operation and management of hotels and resorts.

It counts as subsidiaries Alveo Land Corp., Avida Land Corp., Ayala Property Management Corp., Makati Development Corp., North Triangle Depot Commercial Corp., Laguna Technopark Inc., and Ten Knots Philippines Inc.

The company said it waived about P2.6-billion worth of rent from tenants in 32 malls across the country during the ECQ. It has also earmarked P600 million to assist no-work, no-pay workers.

"Given the continuing market uncertainty, we quickly made adjustments in our plans to ensure the long-term sustainability of the business," said Dy.—AOL, GMA News