Ayala Land, Inc. (ALI) disclosed that its income for 2019 rose by 13% to P33.2 billion, which was driven by a single-digit growth in sales. This was due to the increase in sales of commercial, office, and industrial lots. The profit grew even more because of the 2% revenue increase to P168.8 billion. The company said that it will soon announce the figures for the 4th quarter. It seems like 2019 has been great for ALI and other real estate developers. Let’s see how the company grows last year.
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New Leasing Sales
Ali stated that the higher revenue for 2019 is a result of new leasing formats. ALI gave a hint that the sales reached about P117.6 billion but it did not disclose a comparative value. To further support the growth of the company this year, it reported a 3% growth in sales reservations in 2019 that hit P145.9 billion. Compared to last year, this figure is better since the Avida and Alveo brands of ALI are increasing in terms of sales reservation. Likewise, the commercial leasing revenues had a jump of 13% to P39.3 billion triggered by the newly open offices, malls, and hotels.
Shopping Center and Office Revenues
On top of the commercial leasing revenue increase, ALI also had an 11% jump in shopping center revenues. This is equivalent to P22 billion because of the contributions of its shopping malls in Capitol Central, Ayala Malls Feliz, and Circuit Makati. Office Revenues, on the other hand, hiked by 12% to P9.7 billion driven by the enhanced performance of the office assets of ALI in Circuit Makati, Ayala North Exchange, and Vertis North. The total office gross leasable are reached 1.17 million square meters this year after the projects in Ayala North Exchange BPO Tower, Central Bloc Corporate Center 1 in Cebu and Manila Bay BPO Tower were completed. ALI’s hotels and resorts gave P7.6 billion sales, which is 19% higher compared to 2018.
Good Performance in 2019
The performance of ALI in 2019 was another milestone as it was the 2nd straight year that the company exceeded its target to spend P100 billion for its capital expenditure while continuously investing in new mixed-use developments in the Philippines. The capital expenditure in 2019 was P109 billion or 64% of its gross revenues. ALI also introduced P158.9-billion property development projects and P15.1 billion projects that consisted of hotels, resorts, malls. And offices. ALI keeps on expanding.