MANILA, Philippines - Property giant Ayala Land Inc. (ALI) likely continued growing its profits in the first quarter on the back of strong performance across all business segments.
New properties like malls, offices and hotels launched last year will start contributing profits in the next few months, an official said.
“(Performance) is still good. It’s a respectable quarter, still consistent with expectations,” said ALI chief finance officer Jaime E. Ysmael.
“We were firing on all engines effectively. All different businesses continue to contribute to the pie,” Ysmael said.
The property arm of the Ayala conglomerate posted a 30-percent jump in profits to P2.76 billion in the first three months of 2013 from P2.13 billion a year ago. Consolidated revenues hit P18.53 billion, up 38 percent from the P13.39 billion.
Ysmael said the country’s property sector remained robust, allowing the residential segment to remain as the biggest contributor to ALI’s earnings in the first quarter of the year.
“We did not launch that many projects in the first quarter. But the succeeding quarters is when most of the projects will happen,” Ysmael said.
ALI plans to launch 78 projects consisting of 30,000 residential units this year with an estimated value of P142 billion. The five residential brands of the property firm launched a total of 28,482 units worth P108 billion last year.
ALI is primarily into the development of residential projects, lease of commercial and office space and sale of prime lots. The company is also beefing up its recurring income portfolio through new hotels, convenience stores, department stores, supermarkets and hospitals.
“We will be benefiting from some of those new properties that came onboard last year that will have profitable operations this year,” Ysmael said. For instance, ALI started operations of Holiday Inn, Raffles and Fairmont Makati, and business process outsourcing offices last year.