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Manila Bulletin - 2021-05-05

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ALI earnings weighed down by malls, hotels

Business News

By JAMES A. LOYOLA

Real estate giant Ayala Land Inc. (ALI) reported a 36 percent drop in net income to ₱2.8 billion in the first quarter of the year as it continued to weather the impact of the ongoing COVID-19 pandemic on its operations. In a disclosure to the Philippine Stock Exchange, the firm said it registered a 13 percent decline in consolidated revenues to ₱24.6 billion, versus the first quarter of 2020, due to restrictions brought about by the pandemic. However, sales reservations rose 15 percent to ₱28.5 billion in the first quarter of 2021 from the ₱24.7 billion posted in the same period last year as local demand remained robust amid the community quarantines. This was likewise an increase of 35 percent from the fourth quarter of 2020. “We continue to work through the difficulties of the pandemic with an eye towards full recovery in the next two to three years,” said ALI President and CEO Bernard Vincent O. Dy. He noted that, “Our residential business registered higher sales in the first quarter versus a year ago with new product launches gaining favorable market acceptance.” Dy said “Our commercial leasing businesses improved quarter-on-quarter but these are not expected to fully recover until mobility restrictions are eased.” He added that, “Looking at our total portfolio, we expect our capital expenditures, product launches and completions to drive our performance this year amidst the ongoing challenges caused by the pandemic.” The company’s property development revenues registered at ₱16.2 billion, a 6 percent dip from last year cushioned by higher bookings and construction progress but 37 percent lower than the fourth quarter of 2020. Residential revenues were virtually unchanged year-on-year, ending the quarter at ₱13.6 billion compared to ₱13.8 billion in the first quarter of 2020. Revenues from the sale of office units increased 85 percent to ₱1.8 billion from ₱962 million as a result of solid bookings from developments such as ALVEO’s Park Triangle at Bonifacio Global City and Ayala Land Premier’s One Vertis Plaza at Vertis North. Meanwhile, revenues from the sale of commercial and industrial lots dropped by 67 percent to ₱818.4 million from ₱2.5 billion on slower take up at Vermosa and Alviera estates. Commercial leasing revenues contracted 41 prcent to ₱5.1 billion as operations of malls, hotels, and resorts remained restricted. Shopping center revenues dropped 58 percent to ₱2.0 billion year-on-year on account of limited operations, discounted rental rates to support tenants, and low foot traffic. Sustained BPO and HQ operations drove office leasing revenues to ₱2.5 billion, a 2 percent increase from the previous year.

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