Ayala Land survives COVID-19 meltdown
Ayala Land Inc. withstands pandemic; recovery seen
MANILA – Ayala Land Inc (ALI) survived the devastating impact of COVID-19 on its operations last year due to positive signed achieved during the last quarter.
In a statement, ALI said they recorded a 43% decline in consolidated revenues to P96.3 billion from P168.8 billion in 2019 and a 74% drop in net income to P8.7 billion from a high of P33.2 billion in 2019. The company sustained the momentum for recovery from the third to the fourth quarter however, recording a 49% growth in total revenues quarter-on-quarter to P33.0 billion and a 28% increase in net income to P2.4 billion for the period.
“There was no escaping the major disruption caused by the pandemic in 2020, but our company’s performance in the latter part of the year was encouraging and provides a baseline for our recovery plans moving forward. In 2020, greater value was placed on maintaining a strong balance sheet to weather this crisis and prepare our company to resume our growth aspirations,” said ALI President and CEO Bernard Vincent O. Dy.
He added their operating procedures were also put in place to ensure the safety of their staff and customers as initiatives were introduced to provide assistance to different stakeholders during the most difficult period.
The statement disclosed despite the revenues from property development fell to P66.5 billion for the year due to construction restrictions and lower bookings, this climbed by 65% to P25.8 billion during the fourth quarter from the third quarter of 2020, due to continuous construction progress in 174 projects nationwide. Despite inadequate sales mobility, sales reservations registered at P81.9 billion or 56% of the level achieved in 2019. Fourth quarter sales reservations reached P21.1 billion which is 58% of pre-COVID levels due to sustained property demand.
ALI also said commercial leasing revenues dipped by 44% to P21.9 billion in 2020 due to limited mall and hotel operations but mall revenues grew 10% to P1.7 billion during the fourth quarter from the third quarter due to the lesser strict community quarantine restrictions alongside the holiday season boost.
El Nido and Lio Tourism Estate had more travel bubbles in close coordination with the Department of Tourism and local government units. From only four during the third quarter, a total of 37 travel bubbles were launched during the fourth quarter with an increase of 52% in revenues which reached P787 million.
The company’s capital expenditures amount to P63.7 billion in 2020 and accordance with its revised full-year budget. The funds were utilized for the completion of residential and commercial leasing assets while a portion spent on land acquisition and development of estates. Financial sustainability initiatives for the year also strengthened the balance sheet further with the net gearing ratio improving to 0.74:1 from 0.78:1 in full-year 2019.
Being a pioneer in the industry just like its subsidiary AREIT Inc. becoming the country’s first Real Estate Investment Trust listing at the Philippine Stock Exchange last year. The listing saw AREIT raise net proceeds of P12.3 billion through and initial public offering which received an Issuer Credit Rating of PRS Aaa, along with a Stable Outlook from the Philippine Rating Services Corporation (PhilRatings).
AREIT plans to double its leasable portfolio within the next couple of years. The company has 344,000 square meters of leasable space from its six commercial properties worth P37 billion. (Melo M. Acuña)