Property developer Ayala Land Inc. on Tuesday said its income in the first quarter declined by 36 percent to P2.77 billion, from the previous year’s P4.32 billion due to the impact of quarantine restrictions on its operations.
Revenues for the January-to-March period fell 13 percent to P24.6 billion from last year’s P28.4 billion.
Sales reservations reached P28.5 billion in the first quarter, an increase of 15 percent from P24.7 billion last year, as local demand remained robust amid the community quarantines.
“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,” company president and CEO Bernard Vincent O. Dy said.
“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.”
The company’s property development revenues reached P16.2 billion, 6 percent lower than last year’s figure, but 37 percent lower when compared with the fourth quarter of 2020. About half of the construction workforce was deployed, supported by Makati Development Corp.’s off-site manufacturing facilities.
Residential revenues were flat at P13.61 billion compared to P13.76 billion in the first quarter of 2020. Revenues from the sale of office units increased 85 percent to P1.8 billion from P962 million as a result of solid bookings from developments, such as Alveo’s Park Triangle at Bonifacio Global City and Ayala Land Premier’s One Vertis Plaza at Vertis North.
Revenues from the sale of commercial and industrial lots plunged 67 percent to P818.4 million, from P2.5 billion on slower take up at Vermosa and Alviera estates, while revenues from the sale of its office units rose 85 percent to P1.77 billion, from last year’s P962 million.
Commercial leasing revenues declined 41 percent to P5.1 billion from last year’s P8.71 billion as the operations of malls, hotels, and resorts remained restricted. Shopping center revenues dropped 58 percent to P1.96 billion year-on-year from P4.64 billion on account of limited operations, discounted rental rates to support tenants, and low foot traffic.
Office leasing revenues were flat at P2.51 billion from last year’s P2.47 billion since business process outsourcing firms and other corporate offices remained in their premises.
Hotels and resorts revenues fell 60 percent to P640 million from the previous P1.59 billion as hotel occupancy remained low while resorts were closed since the reimposition of the enhanced community quarantine in end-March.
Ayala Land launched 6 projects in the first quarter with a total value of P17.4 billion. The company has budgeted P100 billion worth of project launches for 2021.
Capital expenditures amounted to P15.3 billion for the period, equivalent to 17 percent of the P88 billion full-year budget.
Approximately 59 percent was spent on residential projects, 12 percent on commercial projects, 10 percent for land acquisition, 17 percent for the development of estates and 2 percent for other purposes.