Ayala Land Inc. posts P3.86B net income in 2006

Ayala Land Inc. posts P3.86B net income in 2006

By Honey Madrilejos-Reyes

Reporter

AYALA Land Inc. (ALI), the property development unit of Ayala Corp., reported on Monday a net income of P3.86 billion for 2006 attributable to equity shareholders versus P3.61 billion a year earlier. Consolidated revenues, meanwhile, reached P25.5 billion, 20 percent better than 2005’s P21.4 billion, despite the absence of extraordinary gains generated from the sale of the company’s investment in MRT in 2005. “The year 2006 proved to be a successful year for ALI as it benefited from positive economic developments which ushered in improved buyer confidence. The company also continued to capitalize on the significant growth in the markets that depend on overseas Filipino workers and business process outsourcing (BPO), which buoyed demand for residential and commercial real-estate products,” said company president Jaime I.  Ayala in a statement. ALI’s residential development business accounted for the bulk of revenues at P14.0 billion or 55 percent of total revenues. A close second was the contribution by its shopping centers at P4 billion, followed by corporate business at P1.3 billion. Strategic landbank management contributed P707 million, while Visayas-Mindano generated P168 million. The support businesses that comprise of hotels, construction and property management, reported revenues of P3.4 billion. Company revenues contributed by its residential development business were buoyed by Ayala Land Premier (ALP) and Community Innovations, Inc. Revenues of ALP reached P8.5 billion, 65 percent more than the previous year. Revenues booked from the sale of 430 condominium units reached P5.3 billion, more than double 2005’s P2.6 billion, while the sale of 456 lots generated P2.7 billion in revenues. Lots booked included 216 in Ayala  Westgrove Heights and 135 in Ayala Greenfield Estates. ALI’s first leisure community project, Anvaya Cove, contributed P593 million in revenues. This is a 242-percent increase from last year’s revenues, as an additional 402 beach club shares, 57 lots and 7 villas were booked. Community Innovations, for its part, reported revenues of P3.7 billion, 71 percent higher than 2005’s P2.2 billion. A total of 785 units were booked, 37 percent higher year-on-year, mainly coming from high-rise projects. The Columns at Ayala Avenue and its Legazpi Village sequel accounted for 74 and 302 units, respectively, while Two Serendra contributed 163 units. Meanwhile, Avida Land’s revenues amounted to P1.8 billion. This translates to an 18 percent decline from last year’s revenues mainly due to the standardization of the revenue recognition policy in the second quarter of 2006. The shopping centers, on the other hand, reported a 12 percent rise in revenues to P4 billion in 2006. This is attributed to the higher occupancy rate across all malls, which averaged at 92 percent from 91 percent in 2005. A higher average rent and the increase in gross leasable area (GLA) from 754,000 square meters to 760,000 square meters were also cited responsible for these gains. The increase in GLA is mainly from the 6,400-square meter Shops at Serendra which soft opened in July. Its occupancy rate averaged at 31 percent in 2006 and, at the end of the year, spaces were nearly fully leased or committed. Higher sales from corporate business were boosted by the sale of 1,407 square meters at Ayala Life-FGU, full year contribution of the three BPO buildings that began in the third quarter of 2005 and the 8-percentage-point rise in 6750’s occupancy rate to 98 percent. On average, ALI’s traditional office buildings enjoyed an occupancy rate of 98 percent, an improvement of from 93 percent in 2005. Further tapping the growing BPO market, ALI will start the development of two BPO campus projects this year. An additional 28,000 square meters of GLA will be added by the first two buildings in the 38-hectare UP Science and Technology Park project as they get completed in the last quarter of 2008. In addition, the company will launch its 20-hectare BPO campus project in Canlubang within the second half of the year.

 

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