Ayala Land net income up 21% in 2017

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(Source: Rappler | February 14, 2018)

Ayala Land Incorporated (ALI), the property development arm of the Ayala Group, saw its bottom line rise on the completion of projects and growth from its leasing segment.

ALI reported a full-year 2017 net income of P25.3 billion in 2017, in a disclosure to the Philippine Stock Exchange (PSE) on Wednesday, February 14.

The figure is up 21% from the P20.9 billion recorded in 2016, as total revenues grew 14% to P142.3 billion.

ALI said property sales grew 13% to P122 billion in 2017 compared to 3% in 2016, adding that it ended the year with P88.8 billion worth of residential, office, and condominium developments.

The company’s revenue from leasing, meanwhile, grew by 10% to P31 billion with its new developments.

ALI opened 5 malls last year – Ayala Malls The 30th, Ayala Malls Vertis North, Ayala Malls Cloverleaf, Ayala Malls Marikina, and Ayala Malls Feliz – with a combined gross leasable area (GLA) of 189,000 square meters (sqm), pushing its total mall GLA to 1.8 million sqm.

Revenues from the malls reached P17.7 billion, 10% higher than in 2016.

ALI also completed 6 office buildings with a total GLA of 185,000 sqm in 2017, bringing its total office GLA to 1.02 million sqm as of end-2017. Revenues from office leasing amounted to P6.7 billion, 12% higher than in 2016.

The company added 6 new developments to its hotels and resorts unit, pushing revenue for the segment to P6.6 billion, up 12%.

ALI also launched 3 mixed-use estates with a total area of 275 hectares in 2017. These are Evo City in Kawit, Cavite; Azuela Cove in Lanang, Davao; and Seagrove in Mactan, Cebu.

ALI spent P91.4 billion in capital expenditures in 2017 with 48% of the budget allocated to residential developments, 29% to commercial leasing projects, and the rest for land acquisition and estates. It ended 2017 with a return on equity of 16.1%.

The developer also announced that it will dedicate 450 hectares as “carbon forests” for protection and regeneration in line with its target to achieve carbon neutrality by 2022.

 

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