Ayala Land income sinks 70% in Jan-June

The coronavirus disease 2019 (Covid-19) pandemic and its impact on its operations caused listed Ayala Land Inc.’s net income to plunge by 70 percent to P4.5 billion in the first half of 2020 from P15.2 billion year-on-year.

In a filing on Friday, the Ayala-led property giant reported that its consolidated revenues reached P41.2 billion, down 50 percent from P83.2 billion in the same period last year.

“Covid-19 severely impacted our performance in the first half of the year,” Ayala Land President and Chief Executive Officer Bernard Vincent Dy said in the filing. “Although we are seeing some positive signs of recovery in certain product lines, we expect the remainder of the year to be extremely challenging.”

Revenues from its property development business dropped by 58 percent to P24.9 billion
on lower project bookings and suspended construction activity.

Residential revenues also declined by 54 percent to P20.5 billion, while office-for-sale revenues slumped by 86 percent to P1.4 billion.

Revenues from sales of commercial and industrial lots fell by 31 percent to P3 billion.

Sales reservations hit P38.3 billion, 47 percent lower than last year’s figure, on limited selling activities during the community quarantines imposed to curb the spread of Covid-19.

Office-leasing earnings jumped by 7 percent to P4.9 billion on account of the sustained operations of business process outsourcing and headquarter buildings.

“Our property sales started to gain traction as the economy reopened, but the performance of our malls and hotels continue to be seriously affected under the current environment,”
Dy said.

“We are constantly making adjustments in our oper ations to position the company for renewed growth when the economy recovers,” he added.

Commercial leasing revenues slid by 31 percent to P12.9 billion in the period because of limited mall and hotel operations and the closure of resorts.

Revenues from shopping centers shed 43 percent to P5.8 billion, while those from hotels and resorts sank by 43 percent to P2.1 billion.

Ayala Land’s capital expenditure (capex) reached P34.8 billion in the period, mainly used for residential developments and commercial leasing assets. Full-year capex, meanwhile, was lowered to P69.8 billion from the original P110 billion.

Ayala Land shares decreased by 60 centavos or 1.83 percent to close at P32.20 each on Friday.

Source: TheManila Times