Ayala Land Posts 9-Month Net Income of P6.4-B, Down 73%

Ayala Land Inc. (ALI) on Friday reported a 73-percent decline in net income for the first nine months of the year due to the impact of the coronavirus disease 2019 (Covid-19) on business operations. Their net income is now at to PHP6.4 billion.

Its consolidated revenues of PHP63.3 billion from January to September is 48 percent lower compared to the same period of 2019.

However, ALI improved between the second and third quarters of the year as 73-percent jump in revenues to PHP22.1 billion were registered.

As government restrictions started to ease, net income in the third quarter of 2020 also reached PHP1.8 billion, a substantial advancement of almost nine-fold compared to the second quarter.

“Covid-19 continues to significantly affect our operations and the performance of our company. We’ve seen, however, improvement in (the) majority of our business lines in the third quarter as pandemic-related restrictions gradually eased. We anticipate favorable developments moving forward as the reopening of the economy gains traction and have started to introduce new product inventory in our estates,” ALI president and chief executive officer Bernard Vincent Dy said in a statement.

Limited construction activity and lower project bookings due to the then strict quarantine protocols of the government resulted to a 52-percent drop of property development revenues amounting to PHP40.6 billion. However, as construction activities have already resumed, property development revenues experienced a growth of PHP15.7 billion in the third quarter from PHP7.6 billion in the second quarter of 2020.

Restricted mall and hotel operations and the temporary closure of resorts during the country’s quarantine period resulted to commercial leasing revenues decreasing by 37 percent to PHP17.3 billion.

The easing of quarantine protocols helped mall revenues rebound in the third quarter where a 29 percent increase from the second quarter to PHP1.5 billion.

However, the current foot traffic of malls is only 30 to 35 percent of pre-COVID mall foot traffic.

Meanwhile, ALI inches closer to normalcy as they are launching three sequel projects worth PHP2.2 billion in the third quarter of 2020. (GFB)