Ayala Land Inc. Net Income Down 97% in Second Quarter

Ayala Land, Inc. (ALI) reported net income for the second quarter of the year at ₱197 million, from ₱7.8 billion in the same period last year, a 97% drop.

Consolidated revenues fell 71% to ₱12.8 billion and costs fell to 61% to ₱12.09 billion.

The pandemic restrictions limited construction activity, causing ALI’s property development revenue to fall 58% to ₱24.9 billion.

Revenue from their residential sector fell 54% to ₱20.5 billion.

Revenue from their offices sector fell 86% to ₱1.4 billion.

Commercial and industrial lot sales fell 31% to ₱3 billion, and reservation sales fell 47% to ₱38.3 billion.

Commercial leasing revenue fell 31% to ₱12.9 billion.

Shopping centre revenue fell 43% to ₱5.8 billion.

Hotel and resorts revenue fell 43% to ₱2.1 billion.

Office lease revenue increased 7% to ₱4.9 billion, the only sector to do so.

ALI reported it waived rental fees for tenants that were unable to operate during lockdown, costing the company ₱5 billion worth of revenue. ALI also allocated ₱600 million for no-work, no-pay employees.

Vincent O. Dy, President and CEO of ALI, said “Although we are seeing some positive signs of recovery in certain product lines, we expect the remainder of the year to be extremely challenging,”

Dy added “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,”

ALI has reported to have cut capital expenditure for the year from ₱110 billion to ₱69.8 billion to be financially sustainable.