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Ayala income climbs 82% on units’ better showing

LISTED conglomerate Ayala Corp. logged an 82.2% increase in its attributable net income for the third quarter amid higher revenues from its various businesses. 

The conglomerate said in a stock exchange disclosure on Tuesday that its July-to-September profit improved to P13.90 billion from P7.63 billion a year earlier.

Third-quarter revenues rose 3% to P81.14 billion from P78.54 billion, it added.

From January to September, attributable net income rose 35% to P32.31 billion while core net income rose 42% to P31 billion on better results from subsidiaries Bank of the Philippine Islands (BPI), Ayala Land, Inc., and ACEN Corp.   

“Ayala’s year-to-date core net income is already at par with its full-year 2019 net income,” the conglomerate said.

Nine-month consolidated revenues improved 13.5% to P245.38 billion from P216.2 billion last year. 

“Despite macroeconomic and geopolitical headwinds, our outlook remains intact as we look to end the year with profits exceeding pre-COVID levels. We continue to build on our solid nine-month period results and rationalize our portfolio wherever it makes sense to do so,” Ayala President and Chief Executive Officer Cezar P. Consing said.

Ayala said BPI’s nine-month net earnings rose 26% to P38.6 billion led by sustained loan growth, margin expansion, and reduced provisions.

BPI’s total revenues rose 15% to P100.9 billion due to sustained growth in net interest income that countered the decline in noninterest income.

Ayala Land logged a 38% increase in its nine-month net income to P18.4 billion led by the “continuing resilience of the residential market and vibrant consumer activity despite macroeconomic challenges.”

Property development revenues rose 4% to P57.2 billion due to higher residential completion, stable bookings, and improved office unit sales.

Residential sales reservations rose 11% to P85.9 billion led by strong demand in projects such as Ayala Land Premier’s Ciela, Arcilo, and Parklinks South Tower, Alveo’s Park East Place, and Avida’s Tower Makati Southpoint.

Commercial leasing revenues rose 32% to P30.8 billion due to higher occupancy and rental rates in Ayala Land’s malls, offices, and leisure developments.

Ayala said ACEN’s nine-month net income rose 59% to P6.6 billion led by new power capacity and a sustained net selling position. 

“Earnings were boosted by value realization and remeasurement gains related to the sale of a stake in the Salak and Darajat plants in Indonesia,” Ayala said.

ACEN’s consolidated revenues increased 13% to P28.7 billion due to new contributions from New England Solar and Pagudpud Wind projects and higher tariffs for renewable energy sources that offset lower wholesale electricity spot market prices.

Meanwhile, Globe Telecom, Inc. recorded a 27% decline in net income to P19.4 billion after last year’s partial sale of its data center business.

Total service revenues rose 3% to P121.1 billion led by contributions from mobile data, corporate data, and digital service revenues.

In a separate disclosure, Ayala’s real estate investment trust AREIT, Inc. said its net income for nine months through September rose 42% to P3.43 billion.

AREIT’s earnings before interest, taxes, depreciation, and amortization rose 39% to P3.56 billion while total revenues rose 41% to P5 billion amid stable operations and the contribution of new assets.

The company’s properties posted a 97% occupancy rate at end-September.

In September, AREIT secured government approval for the subscription of Ayala Land, Ayala-land Malls, Inc., and Northbeacon Commercial Corp. to 607,559,380 AREIT shares in exchange for properties. The transaction was valued at P22.48 billion. 

These properties are One Ayala Avenue East and West business process outsourcing (BPO) towers at the corner of Ayala Ave. and EDSA, the Glorietta 1 and 2 mall wing and BPO buildings at Ayala Center, and the MarQuee Mall in Angeles, Pampanga.

“The new assets contributed to AREIT’s performance beginning the third quarter of 2023 and boosted its gross leasable area (GLA) more than five-fold to 861,000 square meters,” the company said.

“Moreover, the company’s assets under management (AUM) reached approximately P87 billion, nearly triple its size since it went public and currently the largest among Philippine REITs,” it added.

On Tuesday, shares of Ayala Corp. closed unchanged at P620 apiece, while AREIT shares fell 10 centavos or 0.31% to P32.50 apiece. — Revin Mikhael D. Ochave

Neil Banzuelo

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