Property developer Ayala Land Inc. has said that it expects to sustain growth momentum in the second half of 2016. This is on the back of the robust performance of its residential and commercial leasing businesses.
Ayala Land posted a net income of PHP 9.74 billion during the first six months of 2016, up 16 percent compared to last year’s PHP 8.39 billion. Consolidated revenues grew 8 percent to PHP 54.76 billion from PHP 50.61 billion in the same period during 2015.
Its core businesses, such as property development, commercial leasing and services, grew 8 percent to PHP 51.45 billion. This was boosted by the coordinated expansion of its large mixed-use estates in key growth areas throughout the country.
“We are reasonably confident that the trend will continue second half of the year,” says Ayala Land’s Chief Finance Officer Jaime Ysmael.
All indications appears to show its projects are doing well, and recent launches will manifest themselves into additional bookings. So far the leasing projects are doing well.
Boost for the future
Ysmael said the residential business contributes bulk of the company’s revenues.
“The leasing part, the recurring income part, will kick in starting during 2018, 2019, 2020. That’s really the reason why we are embarking on a very aggressive expansion program to build up our leasing portfolio,” he concludes.
