Ayala Land Inc., the country’s second-largest property developer, on Monday said its net income rose 26 percent last year as a result of the robust performance of all its units, from residential to office and mall operations.
The company said in a statement its income reached P14.8 billion in 2014, from the previous year’s record profit of P11.74 billion.
Last year’s rate of growth, however, was slower than 2013’s 30-percent increase in its net income and 36 percent in revenues.
Consolidated revenues reached P95.2 billion, 17 percent higher from the previous year’s P81.52 billion.
“Moving forward, we will continue to introduce new residential projects and scale up our commercial-leasing operations in support of our 2020 Vision,” company President and CEO Bernard Vincent Dy said.
The said vision points to the company’s profits growing by an average of 20 percent every year, with the end goal of reaching the P40 billion in net income by year 2020, or more than triple its profit in 2013.
“Opportunities that will allow us to build integrated sustainable developments will remain our top priority. Not only do these estates become great places to live and work, but they also provide business and job opportunities to many Filipinos,” Dy said.
Revenues from property development, which include the sale of residential lots and units, office spaces, as well as commercial and industrial lots, reached P65.9 billion, or 21 percent higher than the P54.5 billion reported in 2013.
Meanwhile, revenues from the residential segment reached P55.9 billion, 26 percent higher than 2013 figures, driven by strong bookings and project completion across all residential brands.
In addition, its units Alveo and Avida, which ventured into office development, reported aggregated revenues totaling P5.3 billion from their new offices, a fourfold increase from 2013, driven by successful bookings in their developments. These include High Street South Corporate Plaza Towers, Park Triangle Corporate Plaza and One Park Drive in Bonifacio Global City in Taguig.
The company claimed that market acceptance remained high as the company posted an 11-percent increase in sales take-up against the previous year.
“Sales across our various residential brands continue to be good, and we thank our customers for their continued trust,” Dy said.
Total revenues from commercial leasing, which includes its shopping centers, office leasing and hotels and resorts operations, amounted to P21.2 billion in 2014, 18 percent higher than the P18 billion recorded in the same period last year.
Moreover, revenues of the hotels and resorts sector grew by 40 percent to P5.6 billion in 2014, from P4 billion in 2013, primarily driven by the improved performance of new hotels and resorts.
This year the company has allotted P100 billion for capital expenditures primarily earmarked for the completion of ongoing developments and launches of new residential and leasing projects.
Among its plans for the year is the development of the Bacolod Capitol project, which will kick off with the groundbreaking of the residential, retail, office and hotel components of the estate.
The company will also start the development of the 11-hectare mixed-use project in Balintawak, Quezon City.