Ayala Land net income plunges 70% in H1

Property developer Ayala Land Inc. posted a high double-digit drop in its first half net income as its business was weighed down by the COVID-19 pandemic.

In a disclosure to the Philippine Stock Exchange on Friday, Ayala Land said it booked a net income of P4.5 billion, down 70% year-on-year.

Its revenues also dropped 50% to P41.2 billion.

“COVID-19 severely impacted our performance in the first half of the year. Although we are seeing some positive signs of recovery in certain product lines, we expect the remainder of the year to be extremely challenging,” Ayala Land president and CEO Bernard Vincent Dy said.

“Our property sales started to gain traction as the economy reopened but the performance of our malls and hotels continue to be seriously affected under the current environment.  We are constantly making adjustments in our operations to position the company for renewed growth when the economy recovers,” Dy said.

Revenues from property development amounted to P24.9 billion, down 58% drop mainly due to lower project bookings and suspended construction activity.

Residential revenues also declined 54% to P20.5 billion while office for sale revenues dropped by 86% to P1.4 billion.

Revenues from the sale of commercial and industrial lots decelerated by 31% to P3.0 billion, while sales reservations registered at P38.3 billion, 47% lower than last year given limited selling activities during the quarantine.

In response to the ongoing pandemic, the company has so far allocated P5 billion in waived rent to assist merchant partners, while P426 million was raised to support the efforts of Project Ugnayan.

It has also earmarked P600 million to assist no-work-no-pay workers in its ecosystem.

An employee fund-raising program also raised a total of P82.6 million to equip three designated COVID-19 public hospitals and Caritas Manila.

In collaboration with the COVID-19 Inter-Agency Task Force, the company's construction arm likewise transformed the World Trade Center into a 502-bed quarantine facility and the Philippine Red Cross lobby into a testing laboratory. 

 Source: Ted Cordero, GMA News

Source: Peso Economics