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Ayala Land reports record profit

Posted on February 13, 2013 10:41:20 PM [ BusinessWorld Online ]
PROPERTY DEVELOPER Ayala Land, Inc. grew profits to “a record” level last year on the back of robust residential sales, the company said in a disclosure yesterday.
The property arm of conglomerate Ayala Corp. posted a full-year net income of P10.33 billion last year, up 27.69% from P8.09 billion in 2011.
Net income attributable to equity holders grew by 26.6% to P9.038 billion -- also a record -- from P7.14 billion in the same comparable periods.
Revenues -- consisting of real estate sales, interest and investment income, equity in net earnings of associates, and other income -- rose by 23.32% to P54.52 billion from P44.21 billion.
At the same time, costs and expenses expanded by 23.28% to P41.30 billion from P33.50 billion.
In terms of business segments, property development -- involving the sale of residential units as well as commercial and industrial lots -- contributed bulk of revenues at P33.19 billion, up 31.39% from P25.26 billion.
Revenues from commercial leasing, which consists of shopping center and office leasing operations, rose by 17.69% to P8.78 billion from P7.46 billion, while hotels and resorts revenues increased by 9.38% to P2.45 billion from P2.24 billion.
However, services -- consisting of construction and property management businesses -- slid by 12.46% to P5.48 billion from P6.26 billion.
BUDGET
This year, Ayala Land has allotted P65.5 billion for capital expenditures, higher than the P37 billion allocated last year, but still less than the P71.29 billion actually spent.
“It was dictated by opportunities,” Jaime E. Ysmael, Ayala Land chief finance officer, said in a briefing at Seda Hotel, Bonifacio Global City in Taguig City yesterday when asked for the reason for the higher-than-programmed spending.
“We felt there were tremendous opportunities we had to take advantage of. FTI (Food Terminal, Inc.) was one of them.”
In August last year, Ayala Land won the bidding to develop 74 hectares of the state-owned FTI complex in Taguig City. It submitted a P24.331-billion offer involving a mixed-use central business district similar to its planned Vertis North hub in Quezon City.
Mr. Ysmael told reporters last month that work at FTI -- now dubbed Arca South -- is likely to start this year with the commercial segment.
UPBEAT
This year’s P65.5-billion budget will be used to start 69 property projects collectively worth P129 billion. Ayala Land last year launched 67 projects worth P110 billion, Mr. Ysmael said.
He said yesterday that the company expects to sustain double-digit revenue and profit growth this year over 2011.
Sharing this upbeat outlook, the company’s top officer said in the same briefing that any risk will come indirectly from continuing economic uncertainties abroad, especially in the West.
“Things continue to look positive,” said Antonino T. Aquino, Ayala Land president and chief executive officer. “If ever, I will be concerned with the global economic side, but not so much with the domestic.”
Shares of the company gained P1.35 or 4.58% to close at P30.85 apiece yesterday from P29.50 on Tuesday. -- FJGDLF              
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