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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