Ayala Land, Inc. (ALI) booked a 12% profit growth during the nine-month period of this year. This is on the back of the rapid growth of its real estate business. The real state company’s net income was at P23 billion for the first nine months of the year. The total revenues were up by 2% or equivalent to P121.7 billion. P119.7 billion of it came from its real estate business since there was a growth in its office, industrial, and commercial lot sales. Wow! The real estate industry is really one of the best performers in the market, proven by ALI. Let’s all hope its good performance will continue until the end of the year!
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Ali disclosed that the financial result of the third quarter is in line with its expectations after what it had seen during the first two quarters of this year. In fact, the real estate firm was able to launch residential projects that are worth P37.8 billion from July to September. Because of this, the total launches it has this 2019 is at P57.3 billion. Since there were more project launches during the third quarter, ALI hopes that it will help to sustain its growth momentum through 2020.
When it comes to revenues from the property development of ALI, it had reached P85.4 billion in the first nine months. The company believed that this is due to the 51% growth in office for sale revenues or equivalent to P11.1 billion and a 16% rise in commercial and industrial lot sales to P6.5 billion. The reservation sales also contributed a total of P108.5 billion due to the solid performance of its subsidiaries namely Avida Land Corporation and Alveo Land Corporation. The commercial leasing business of the company also added to its growth, which gave a 16% increase to P27.6 billion because of the new malls that opened during this period.
Recently, Ayala Corporation (AC) is eyeing to issue perpetual bonds that are dollar-denominated. The firm will choose banks to handle the issuance. In a disclosure made just recently, the conglomerate told that it requested some banks for a Regulation S offering of its dollar-nominated fixed-for-life or non-deferrable perpetual notes. If you are wondering what is a Regulation S offer, it’s actually often utilized for securities that are performed outside the United States. This can be utilized to issue equity or debt securities so that a company may raise capital.