Property

Mobility restrictions slash ALI Q1 profit by 36%

Property giant Ayala Land Inc. saw its net income decline by more than a third to P2.8 billion as quarantine measures continued to weigh on recovery.

Consolidated revenues reached P24.6 billion, down 13% from the previous year even as sales reservations climbed by 15% to P28.5 billion on robust local demand.

Revenues from the property development business dipped by 6% to P16.2 billion while revenues from residential segment were largely flat at P13.6 billion.

The office business racked up P1.8 billion in revenues, up 85% on solid bookings from Alveo’s Park Triangle in Bonifacio Global City and Ayala Land Premier’s One Vertis Plaza at Vertis North.

Revenues from the sale of commercial and industrial lots plunged by 67% to P818.4 million on slower take up at Vermosa and Alviera estates. Commercial leasing revenues declined by 41% to P5.1 billion as operations of malls, hotels,and resorts remained restricted.

Shopping mall revenues fell 58% to P2 billion due to limited operations, discounted rental rates to support tenants and low foot traffic.

Revenues from hotels and resorts declined by 60% to P640 million as hotel occupancy remained low while resorts were closed since the reimposition of the enhanced community quarantine in end-March.

“We continue to work through the difficulties of the pandemic with an eye towards full recovery in the next two to three years. Our residential business registered higher sales in the first quarter versus a year ago with new product launches gaining favorable market acceptance,” said Bernard Vincent O. Dy, president and CEO of ALI.

“Our commercial leasing businesses improved quarter-on-quarter but these are not expected to fully recover until mobility restrictions are eased. Looking at our total portfolio, we expect our capital expenditures,product launches and completions to drive our performance this year amid the ongoing challenges caused by the pandemic,” he added.

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