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Ayala Land’s 2014 profit beat estimates

Posted on February 16, 2015 09:47:00 PM [ BusinessWorld Online ]
By Daphne J. Magturo, Reporter

Bottom line for the whole 2014 reached P14.8 billion from P11.7 billion a year gap, the company said in a press statement on Monday, surpassing the P14.5-billion median estimate of three brokerage firms interviewed yesterday.

Shares in the company gained five centavos or 0.14% to close at P35.35 apiece on Monday.

Ayala Land’s consolidated revenues rose 17% year on year to P95.2 billion.

In the property development segment, which includes the sale of residential lots and units, office spaces, and commercial and industrial lots, the company grew its revenues by 21% to P65.9 billion. Ayala Land’s commercial leasing business also reported revenues of P21.2 billion, 18% higher year on year, while revenues from hotels and resorts jumped 40% to P5.6 billion, “primarily driven by the improved performance of new hotels and resorts.”

“We remain positive,” Ayala Land President and Chief Executive Officer Bernard Vincent O. Dy told a media briefing in Makati City.

ALI’s 2020 targets include an annual net income growth of 20% to P40 billion by 2020, and a recurring income business that contributes 50% to total profit.

At present, the company’s recurring income accounts for 38% of its total profit, while the rest comes from property development, Ayala Land Chief Finance Officer Jaime E. Ysmael said in the same briefing.

This year, the company is looking at launching projects worth P100-120 billion, “depending on demand,” Mr. Dy said, noting that the company expects growth “across the board.”

For the office segment alone, the gross leasable area to be launched this year will amount to 300,000 square meters (sq.m.) -- roughly the same level last year -- in Alabang Town Center, Cebu City and Bonifacio Global City. Another 147,000 sq.m. leasable space in shopping malls will also be launched this year, including those in Nuvali, Bonifacio Global City, Ortigas, Tagaytay, Circuit Makati and UP Town Center.
“Ayala Land outpaced our estimate of 22%,” said Nisha S. Alicer, chief equity analyst at DA Market Securities, Inc. “We maintain a buy recommendation with a TP (target price) of P39.”

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