[ Manila Bulletin Online ] February 11, 2009
By JAMES A. LOYOLA
Real estate giant Ayala Land Inc. reported a 10 percent growth in consolidated net income last year to P4.8 billion from P4.4 billion in 2007 despite the challenging macroeconomic environment especially in the second half of 2008.
In a disclosure to the Philippine Stock Exchange (PSE) yesterday, ALI chief finance officer Jaime Ysmael said this robust performance was achieved on the back of strong operating revenues and equity earnings from affiliates combined with effective cost control measures.
ALI recorded consolidated revenues of P33.7 billion, its highest ever and 31 percent more than the P25.7 billion achieved in 2007.
Operating revenues jumped 34 percent to P30.6 billion with the bulk of the gains coming from the firm¢s residential, strategic landbank and construction businesses. Shopping centers and corporate business also contributed to consolidated revenue growth.
Equity in net earnings of investees rose by 12 percent to P885 million following the favorable performance of ALI’s corporate investment vehicles in Bonifacio Global City, Cebu Holdings Inc. and the shopping centers affiliates.
Meanwhile, interest, investment and other income contracted by 18 percent to P2.2 billion as the gain from the sale of shares in three subsidiaries in March 2008 was lower compared with the gains from similar large transactions in 2007.
Consolidated net operating income rose 21 percent to P9.3 billion but overall NOI dipped four percentage points to 30 percent following the drop in shopping center and construction margins.
Shopping center margins were affected by the closure of the high-margin Glorietta 2, which is being redeveloped after a tragic explosion in the building, as well as the start-up operations at Greenbelt 5.
Construction margins were put under pressure by the increase in the costs of construction materials, particularly in the third quarter.
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