BAGUIO CITY – Ayala Corporation’s net income expanded two-fold in the first half of the year to P37.8 billion from a year ago, driven by the solid group of its banking, telecommunications and real estate units combined with gains from value realization exercises in its emerging businesses.
Equity earnings from Ayala’s business units, which include divestment gains from the merger of AC Education with iPeople, and partial divestment of AC Energy’s thermal assets, doubled to P41.7 billion in the first semester.
“Our first half results reflect the strength of our core holdings in real estate, banking, and telecommunications. This was complimented by the value realization initiatives in our energy business,” Ayala president and chief operating officer Fernando Zobel de Ayala said.
AC is pleased with the rapid growth of AC Energy, its growing contribution to the company’s overall profitability and the regular value realization exercises to deliver investments returns to the corporation.
Ayala Land recorded a net income of P15.2 billion, a 12 percent expansion from its year ago level on robust growth performance of its commercial leasing as well the sale of offices and commercial and industrial lots.
Ayala Land’s revenues from its property development business reached P58.9 billion, mainly driven by the office-for-sale segment, which doubled to P10.1 billion which was bolstered by the completion progress and new bookings from Alveo Financial Tower, High Street South Corporate Plaza, and Park Triangle Corporate Plaza.
Revenues from Ayala Land’s commercial leasing segment expanded 16 percent to P18.6 billion, lifted by higher contributions of newly opened malls, offices and hotels wherein total mall revenues grew 12 percent to P10.3 billion, supported by an 11 percent growth in same mall revenues. Office revenues, on the other hand, surged 25 percent to reach P4.6 billion as newly opened offices in Ayala North Exchange, Vertis North, and Circuit Makati further gained traction.
Finally, hotels and resorts revenues expanded 17 percent to P3.7 billion, boosted by Seda hotels and Ayala Center Cebu and Lio.
At the end of the first semester, Ayala Land’s mall gross leasable area stood at 1.9 million square meters, with 719,000 square meters under construction.
Further, mall average occupancy was at 88 percent while office general land area, meanwhile, stood at 1.1 million square meters, with 406,000 square meters under construction while office average occupancy was at 93 percent, with stable developments at 96 percent.
Ayala Land continues to achieve a more diversified net income mix as in terms of location, new estates and established estates contributed 52 percent and 48 percent of its net income, respectively.
In terms of business line, Ayala Land’s development income on property sales and construction accounted for 64 percent, while recurring income or commercial leasing, hotels and resorts, property management, and new leasing formats contributed 36 percent to its net profit in the first half.