Posted on May 09, 2012 10:01:20 PM [ BusinessWorld Online ]
PROPERTY FIRM Ayala Land, Inc. yesterday said it grew its first quarter profits by 31% to P2.13 billion over year-ago levels as improved performance in most segments offset a drop in Nuvali sales and a hike in expenses.
Consolidated revenues went up by 17% to P12.39 billion for January to March over a year ago, mainly from contributions from core real estate business and hotel operations, the listed firm said.
“Revenues from real estate and hotels increased by 18% to P11.77 billion, comprising the bulk of consolidated revenues, buoyed largely by continued growth in the property development and commercial leasing businesses,” the firm said in a statement.
Property development posted an 18% growth in revenues of P7.51 billion from January to March from P6.34 billion.
The residential segment saw a 21% revenue increase to P7.01 billion.
However, revenues from sales of commercial and industrial lots fell by 11% to P499 million due to low sales in Nuvali.
Commercial leasing, which includes shopping center and office leasing, also saw a 21% uptick to P2.04 billion from P1.68 billion. Revenues from its shopping centers went up by 27% to P1.39 billion.
The company’s hotels and resorts business grew by 16% to P650 million from P560 million “largely due to better occupancy rates and revenue per available room.”
The company’s services unit posted revenues of P4.25 billion mostly due to higher construction order from Ayala Land projects.
Its revenue growth reportedly outpaced the hike in expenses “as a result of disciplined control of project costs and direct operating expenses.”
“We are again pleased by the sustained growth of our major business lines in the first quarter of 2012, riding on the crest of last year’s banner performance. Demand remains high and our sales take-up for residential products was again a new record for quarterly sales,” said Ayala Land Chief Finance Officer Jaime E. Ysmael.
He added the company is “on track, maybe even ahead, of meeting our target of achieving P10 billion profits by 2015.”
“We will be opening international sales offices to tap the overseas Filipino market. About 15% of sales in the first quarter were from that market and that number should move up as we activate our international offices,” said Mr. Ysmael. -- Emilia Narni J. David