Property giant Ayala Land Inc. (ALI) grew its net profit in the first semester by 12 percent year-on-year to P15.2 billion as higher earnings from commercial leasing and office sales made up for the decline in residential development revenues.
Total revenues increased by 4 percent year-on-year to P83.2 billion during the period.
“We continue to benefit from the strong economic growth of the country. Results from our various business lines continue to be good, with notable performances in our leasing portfolio and the sales of office condominiums and commercial lots. Moving forward, we remain positive on demand across all market segments. [We] plan to increase the level of product introduction in the second half of the year,” ALI president and chief executive Bernard Vincent Dy said in a statement Monday.
Demand for residential, office and commercial properties translated to real estate revenues of P81.9 billion during the period. Property development revenues amounted to P58.9 billion, supported by the office for sale segment, which grew by more than two-fold to P10.1 billion. Commercial and industrial lot sales increased by 11 percent to P4.3 billion.
Commercial leasing revenues jumped by 16 percent year-on-year to P18.6 billion. Shopping center revenues grew by 12 percent to P10.3 billion at end-June, supported by same mall revenue growth of 11 percent. This was attributed to the increased contribution from Ayala Malls Feliz, Circuit Makati and Capitol Central, which supplemented the strong operations of Glorietta and Greenbelt in Makati and Ayala Center in Cebu.
Six-month office leasing revenues also went up by 25 percent year-on-year to reach P4.6 billion as newly opened offices in Ayala North Exchange, Vertis North and Circuit Makati gained traction.
The hotels and resorts segment also saw a 17-percent year-on-year growth in revenues to P3.7 billion, due to strong performances from Seda Ayala Center Cebu and Lio.