Ayala Land Inc. (ALI) generated a net income of P25.3 billion in 2017, a strong growth of 21 percent driven by its healthy topline and robust operations. Total revenues grew 14 percent to P142.3 billion, backed by substantial bookings and completion of its property development projects and expanding leasing business.
Supporting its healthy topline was the resurgence of property sales in 2017, recording higher growth of 13 percent to P122.0 billion, a big jump from the 3 percent growth in 2016. The fourth quarter of 2017 was also robust with a 17 percent growth in property sales as ALI accelerated its launches during the last quarter, ending 2017 with a total of P88.8 billion worth of residential and office condominium developments. This was complemented by the growing leasing revenues which increased by 10 percent to P31.0 billion as the new malls, offices, and hotels and resorts grow in contribution.
“We are pleased with our 2017 business results. All major product lines posted strong growth, with property sales coming in at the higher end of our estimates and leasing income increasing in line with our planned asset build up. Further, we continue to expand our estates and land bank around the country – putting us in a good position to continue to benefit from the strong performance of our economy,” said ALI President and CEO Bernard Vincent O. Dy.
2017 was also a landmark year as ALI completed the most number of projects which helped expand its leasing capability. The company opened five malls: Ayala Malls The 30th, Ayala Malls Vertis North, Ayala Malls Cloverleaf, Ayala Malls Marikina, and Ayala Malls Feliz, with a combined gross leasable area (GLA) of 189k sqm, bringing the company’s shopping center GLA to 1.8 million sqm. Revenues from the malls reached P17.7 billion, 10 percent higher than in 2016.
Also, Ayala Land completed six office buildings with a total GLA of 185 thousand sqm, strengthening its hold in the office market segment, bringing the company’s total office GLA to 1.02 million sqm in 2017. Revenues from office leasing amounted to P 6.7 billion, 12 percent higher than 2016.
The company’s hotels and resorts business added six new facilities in its roster, including Seda Vertis North with 438 rooms, the largest hotel under its own Filipino-branded hotel chain. Revenues from its tourism-focused business reached P6.6 billion, 12 percent higher from the same period last year.
As part of ALI’s innovative response to market needs, it introduced new leasing formats such as Clock In and The Flats. Clock In offers serviced offices with fully equipped and furnished spaces for start-up ventures while The Flats offers dormitory-type lodging for office workers. Clock In operates branches at Makati Stock Exchange and BGC Technology Center and is scheduled to open additional branches in Makati, BGC, Vertis North and the 30th in Pasig this 2018.