MANILA, Philippines – The sustained earnings momentum of its telecommunications, real estate and banking units, including capital gains realized in the third quarter, drove Ayala Corporation (PSE:AC)’s net earnings in the first nine months of the year to Php17.7 billion, 26 percent higher than a year ago.
In the third quarter alone, Ayala registered a net income of Php7.3 billion, representing a 72 percent increase year-on-year.
Excluding the capital gains primarily from the partial sale of AC Energy’s stake in North Luzon Renewable Energy Corporation this year and the divestment of Stream Global Services in the previous year, Ayala’s nine-month earnings recorded robust growth of 23 percent from a year ago.
This solid performance was underpinned by the strong double-digit growth in equity earnings contribution from Ayala’s business units, which reached Php21.4 billion, 14 percent higher than its year-ago level.
“Our growth trajectory remains strong as we continue to be optimistic about the overall domestic environment,” Ayala President and Chief Operating Officer Fernando Zobel de Ayala said.
Ayala Land’s net income for the first nine months of the year expanded 19 percent to Php12.8 billion fueled by the sustained growth in residential development, office sales, and commercial leasing segments. Real estate revenues rose 10 percent to Php70.2 billion.
Revenues from residential development grew 10 percent to Php40 billion on higher bookings and project completion, while new launches boosted office sales to Php4.0 billion, 57 percent higher year-on-year. Residential sales reached Php82.9 billion as of September 2015.
In commercial leasing, higher occupancy and average rental rates drove the 12 percent increase in shopping center revenues to Php9.2 billion and the 18 percent improvement in office revenues to Php3.7 billion. Hotels and resorts revenues posted a 7 percent increase to Php4.3 billion.
The strong performance of its commercial leasing segment supported Ayala Land’s continued buildup of its recurring income business which contributed 46 percent of its net income during the period.
Ayala Land launched various residential, office for sale, and leasing projects amounting to Php97.9 billion during the period.
Ayala maintains a healthy balance sheet. Consolidated net debt to equity ratio stood at 0.53 to 1 as of September 30, 2015. Parent company cash reached Php43.3 billion, putting its net debt to equity ratio at 0.41 to 1 and 0.21 to 1, if including its share from the undistributed earnings from its investee companies. – BusinessNewsAsia.com