By Leslie D. Venzon
MANILA, Feb. 16 (PNA) — Property giant Ayala Land, Inc. (ALI), the property firm of the Ayala conglomerate, expects an average 20-percent profit growth this year as the country’s robust economy continues to drive the demand for real estate.
ALI president and chief executive officer (CEO) Bernard Vincent Dy expressed optimism at sustained growth through the year after the company posted a 26-percent increase in profit in 2014.
Dy expects Php100 billion to Php120 billion in project launches this year depending on the demand.
It would launch more residential, office, hotel and commercial center projects.
“I think, across the board, the opportunities will be going to be there. The economy is expected to expand actually higher than 2014; the (country) is forecasting higher GDP (gross domestic product) growth this year… The main economic drivers continue to be supportive of momentum,” he told reporters.
Dy also cited the reasonable interest rates, overseas Filipino workers (OFW) remittances and continuing robust business process outsourcing (BPO) earnings.
Meanwhile, ALI said its net income reached Php14.8 billion in 2014 from the Php11.7 billion posted in 2013 on the back of robust property and residential development sales.
Its consolidated revenues reached Php95.2 billion, 17 percent higher year-on-year as it continues to seize opportunities for growth under market conditions that remain positive.
“We are pleased with the performance of each of our business lines in 2014 and their contributions to our overall growth,” said Dy. “Moving forward, we will continue to introduce new residential projects and scale-up our commercial leasing operations in support of our 2020 Vision.”
ALI launched four estates last year – Alviera Pampanga, Altaraza Bulacan, Arca South Taguig, and Atria Park District Iloilo which provides over 1,200 hectares of developable land.
“Opportunities that will allow us to build integrated sustainable developments will remain our top priority. Not only do these estates become great places to live and work, but they also provide business and job opportunities to many Filipinos.” Dy said.
On property development, which includes the sale of residential lots and units, office spaces as well as commercial and industrial lots, ALI reported revenues of Php65.9 billion in 2014, 21 percent higher than the Php54.5 billion reported in 2013.
Revenues from the residential segment reached Php55.9 billion in 2014, 26 percent higher than 2013 results, driven by strong bookings and project completion across all residential brands.
Total revenues from commercial leasing, which includes the company’s shopping centers and office leasing as well as hotels and resorts operations, amounted to Php21.2 billion in 2014, 18 percent higher than the Php18 billion recorded in the same period last year.
Moreover, revenues of the hotels and resorts business grew by 40 percent to Php5.6 billion in 2014 from P4.0 billion in 2013, primarily driven by the improved performance of new hotels and resorts.
This year, ALI has allotted Php100 billion for capital expenditures primarily earmarked for the completion of ongoing developments and launches of new residential and leasing projects which will help sustain its growth trajectory in the coming years. (PNA)