BUILDER Ayala Land Inc. (ALI) is ramping up its 2012 capital spending by more than a fifth to P37 billion on expectations that the property segment will remain robust as indicated by record earnings posted in 2011.

ALI, the Philippines’ biggest in developer in terms of market value, reported on Wednesday that income in 2011 rose by 31 percent to a record P7.14 billion as revenues increased 17 percent to P44.21 billion.

President Antonino Aquino said the builder launched 20,613 units last year across 67 projects, while pre-sales tally reached P51.7 billion. The builder expects to top that with 24,800 units planned for 2012.

“We plan to launch about the same number of projects this year but 29-percent higher in value and 20-percent more in the number of units,” Aquino said.

Chief Finance Officer Jaime Ysmael said the company’s 2012 budget will be spent on ongoing developments, new residential and leasing project launches, and landbank acquisitions.

The builder said the bulk of its top-line growth came from real estate and hotels, which accounted for P41.23 billion or a gain of 16 percent. Net income margin improved 16 percent in 2011 from 14 percent the previous year.

ALI’s property development segment, which includes the sale of residential units as well as the sale of commercial and industrial lots, posted revenues of P25.3 billion during the period, up 27 percent.

“Revenues from the residential segment reached P23.99 billion in 2011, 29-percent higher than the previous year, driven by the higher bookings and steady progress on construction across all residential brands,” it said in the disclosure.

Upscale brand Ayala Land Premier generated P9.51 billion in revenues, 36-percent higher year-on-year, on the back of a 35-percent growth in bookings and the construction progress in projects such as Park Terraces 1 and 2 in Makati City, and Santierra and Elaro in Nuvali.

Alveo and Avida also posted year-on-year revenue growth of 15 percent and 44 percent to P5.83 billion and P6.06 billion, respectively.

Residential brand Amaia further contributed to residential revenues in 2011 as it generated P841 million largely from the full year impact of its maiden project AmaiaScapes Laguna.

ALI launched another residential brand, Bella Vita, last year to cater to the socialized housing segment.
Meanwhile, revenues from the sale of commercial and industrial lots grew by 2 percent in 2011 to P1.27 billion, largely due to the sale of 14 commercial lots in Nuvali.

Commercial leasing, which includes the company’s shopping center and office leasing operations, posted total revenues amounting to P7.46 billion in 2011, 16-percent higher than the P6.45 billion recorded the previous year.
Revenues from shopping centers increased by 14 percent to P4.96 billion in 2011, driven by higher average occupancy and lease rates.

Office leasing operations rose by 19 percent to P2.50 billion in 2011 due to the significant increase in occupied gross floor areas of its business process outsourcing office spaces.

ALI’s hotels and resorts business posted revenues of P2.24 billion in 2011, an improvement of 18 percent over the previous year. It credited gains to the consolidation of the El Nido Resorts’ operations in Palawan.


For those interested to know more about Ayala Land Premier projects, call Coco Midel 09175029252.