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MANILA – Ayala Land Inc. (ALI) on Friday reported a 73 percent decline in net revenue to PHP6.4 billion during the first nine months of the year, as the 2019 coronavirus disease (Covid-19) pandemic continues to affect business operations.
Its consolidated revenue reached PHP63.3 billion in the January-September period, 48 percent less compared to the same period last year.
However, the company saw an improvement between the second and third quarters of the year, as it posted a 73 percent increase in revenue to PHP22.1 billion.
Net income for the third quarter also reached PHP 1.8 billion, a substantial advance of almost nine times compared to the second quarter, when government restrictions began to ease.
“Covid-19 continues to significantly affect our operations and the performance of our company. However, we have seen an improvement in (most) of our lines of business in the third quarter as restrictions related to the pandemic gradually eased. We anticipate favorable developments in the future as the reopening of the economy gains momentum and we have begun introducing new product inventories at our properties, ”ALI President and CEO Bernard Vincent Dy said in a statement.
Property development revenue amounted to PHP40.6 billion, a 52 percent drop due to lower project bookings and limited construction activity.
With the resumption of construction activities, real estate development revenue more than doubled to PHP15.7 billion in the third quarter from PHP7.6 billion in the second quarter.
Commercial leasing income also decreased by 37 percent to PHP17.3 billion due to restricted operations of shopping centers and hotels and the temporary closure of resorts during the period.
However, in the third quarter, shopping center revenue began to rebound, increasing 29 percent from the second quarter to PHP1.5 billion as restrictions eased, resulting in more foot traffic of 30 to 35 percent of pre-Covid levels.
The company also came closer to a return to normalcy by launching three subsequent projects with a total value of PHP2.2 billion in the third quarter of 2020.
In August this year, AREIT Inc. of Ayala Land became the first listing of the country’s Real Estate Investment Trust on the Philippine Stock Exchange.
AREIT continues to diversify its leasing portfolio with its planned PHP5.1 billion acquisition of the 30th commercial development in Pasig.
AREIT’s first acquisition in September was the purchase of Teleperformance Cebu, a 12-story building located in Cebu IT Park, Cebu City. It has a total gross leasable area of 18,092 square meters occupied 100 percent. (PR)
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