AYALA Land Inc. (ALI) recorded consolidated revenues of P28.4 billion and net income of P4.3 billion, a 28 percent and 41 percent decline, respectively in the first quarter of 2020, reflecting the impact of the Covid-19 enhanced community quarantine (ECQ).
Revenues from property development contracted by 38 percent to P17.2 billion, mainly due to lower project bookings and the impact of the Taal volcano eruption in January this year on the sales of its projects in Southern Luzon. This was aggravated further by lower incremental completion as construction activities were interrupted by the ECQ.
Residential revenues declined 39 percent to P13.8 billion while office for sale revenues dropped by 68 percent to P962 million. The earthquakes in Davao in the fourth quarter of 2019 also affected the sales of its projects in the province. Nevertheless, revenues from the sale of commercial and industrial lots grew by eight percent to P2.5 billion mainly from existing developments such as Arca South, Seagrove and Laguna Technopark. Sales reservations registered at P24.7 billion, 27 percent lower, during the period.
ALI was able to launch four projects valued at P5 billion in the first quarter of 2020. While additional launches have been put on hold for the rest of the year, ALI has sufficient projects in its inventory since it launched P159 billion worth of developments last year alone.
Commercial leasing revenues reached P8.7 billion, a slight five percent dip as sustained office leasing mitigated limited mall operations and the closure of resorts during the ECQ. Shopping center revenues dropped nine percent to P4.6 billion while revenues from hotels and resorts ended 17 percent lower to P1.6 billion. Office leasing revenues meanwhile increased by 15 percent to P2.5 billion through the sustained operations of business process management and headquarter buildings.
The company’s capital expenditures reached P21.6 billion in the period, mainly for residential developments and commercial leasing assets. The full year capex estimate has been adjusted to P69.8 billion from the previously planned P110 billion.
With P23 billion in cash, unutilized credit lines of P25 billion, action plans in place for prudent cost monitoring and capital allocation, and conservative debt management, the company’s balance sheet remains robust.
ALI waived about P2.6 billion worth of rent from tenants in its 32 shopping malls nationwide during the ECQ of Luzon and other key cities. It has also earmarked P600 million to assist no-work-no-pay workers in its ecosystem. (PR)