AYALA Land, Inc. expects to continue its sales growth trajectory into the second half of the year, driven by its residential property business, its treasurer said.
“We have always said that as long as the economy is growing at 5% or better, then our businesses will continue to do well,” Ayala Land Senior Vice-President and Chief Finance Officer Augusto Cesar D. Bengzon told reporters on the sidelines of a company event.
Mr. Bengzon, who is also the company’s treasurer, said Ayala Land remains optimistic about its residential sales, which have been growing close to pre-pandemic numbers.
“We are quite pleased with the performance of our residential business,” he said.
He said sales have been trending at about 16% to 17% of pre-pandemic periods, “which were boom years.”
“The past three years, despite the pandemic, it has been growing at mid-teen levels,” he said.
The company targets to launch about P100-billion worth of residential projects this year depending on market demand.
“So we track our inventory levels, and we would like to move our inventory. Once we get it within our desired levels then we can launch,” Mr. Bengzon said.
“But what’s more important is that we are prepared to launch depending on the demand on the ground,” he added.
He said that for the year, the bulk of the company’s capital spending will be allocated for the completion of its residential projects.
Ayala Land said earlier that it allocated about P85 billion for capital expenditure projects this year.
During the first quarter, the company’s attributable net income rose by 42% to P4.5 billion, while revenues jumped by 26% to P30.9 billion due to higher contributions from its business lines.
Residential sales reservations rose by 15% to P27.7 billion due to resilient demand despite elevated interest rates. Commercial leasing revenues amounted to P10.1 billion, a 57% jump from the prior year. Revenues from property development increased by 8% to P17.1 billion.
On Tuesday, Ayala Land rose by 1.62% or 40 centavos to P25.10 per share. — Adrian H. Halili