MANILA – Ayala Land Inc., the leading property giant, has exceeded expectations by reporting robust earnings for the first half of the year despite concerns about a potential slowdown due to high interest rates. According to a statement released on Wednesday, the company recorded a 41% increase in net income from January to June, reaching P11.4 billion. Ayala Land is part of the Zobel family conglomerate Ayala Corp.
Ayala Land’s strong performance in the first half of 2023 can be attributed to the resilience of the property market and strong consumer activity in the areas where it operates, said Bernard Vincent O. Dy, the company’s president and CEO.
During the first six months of the year, total revenues grew by 24% to P6 billion. Residential reservation revenues also saw notable growth, expanding by 18% to P58.3 billion.
“Leveraging the positive momentum of the economy, we will capitalize on market opportunities to enhance our diversified portfolio throughout the rest of the year,” Dy added.
The company reported a 13% increase in overall property development revenues, reaching P38.7 billion. This growth was driven by the completion of residential projects, as well as the sales of commercial and industrial lots and office units. Residential revenues alone grew by 14% to P31.2 billion, with sales driven by several projects including Alveo’s Park East Place in BGC, AyalaLand Premier’s Ciela in Carmona, Cavite, Arcilo in Nuvali, Laguna, Parklinks South Tower in Quezon City, and Avida Towers Makati Southpoint.
In addition, Ayala Land launched P31.9 billion worth of residential projects during the first semester of 2023. Commercial leasing revenues also saw a significant increase of 39% to reach P20.2 billion, thanks to higher occupancy and leasing rates. The recovery of malls continued in the first half, with shopping center revenues increasing by 49% to P10.2 billion. Office leasing earnings grew by 8% to P5.8 billion, while hotel and resort revenues surged by 79% to P4.2 billion.
During the first half of the year, Ayala Land invested P38.7 billion in capital expenditures, which accounted for about 45% of the full-year budget of P85 billion.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
