Manila Bulletin - Ayala Land, Inc. (ALI) said it expects to expand its
record profit this year as the country’s largest developer takes
advantage of a housing shortage and develops business districts outside
the capital.
“That is very possible given the very positive tailwind we’re getting from the Philippine economy,” Ayala Land President Antonino Aquino said in an interview with Bloomberg Television.
The developer stands to benefit from an undersupply of housing it estimates at 4 million homes nationwide. Profit rose 27 percent to a record P9.04 billion in 2012. The company, which developed the Makati business district in Manila, has said it targets to boost profit to P10 billion by 2014.
The Philippines’ $225-billion economy expanded 6.6 percent last year, the fastest pace in two years, as government spending and consumption rose. Its 6.8 percent expansion last quarter beat that of Indonesia, Malaysia and India. Standard & Poor’s in December raised the Philippines’ sovereign debt outlook to positive on improved governance and public finances, bringing it closer to investment-grade status.
“Ayala Land is in the best position to capitalize on the economy’s growth momentum because it is in everything from housing to retail to offices, and geographically it is everywhere,” Richard Laneda, an analyst at Manila-based COL Financial Group Inc., said.
Profit growth may decelerate after coming from a high base in 2012, he said. Growth in net income has been slowing, rising 35 percent in 2010 and 31 percent in 2011.
The builder, based in Manila, has diversified its residential portfolio into five brands selling homes from P400,000 to P35 million. Its housing business accounts for almost half of earnings.
“From a total fundamental standpoint, we see this market will continue to be robust,” Aquino said, citing the shortage of homes across the country.
“That is very possible given the very positive tailwind we’re getting from the Philippine economy,” Ayala Land President Antonino Aquino said in an interview with Bloomberg Television.
The developer stands to benefit from an undersupply of housing it estimates at 4 million homes nationwide. Profit rose 27 percent to a record P9.04 billion in 2012. The company, which developed the Makati business district in Manila, has said it targets to boost profit to P10 billion by 2014.
The Philippines’ $225-billion economy expanded 6.6 percent last year, the fastest pace in two years, as government spending and consumption rose. Its 6.8 percent expansion last quarter beat that of Indonesia, Malaysia and India. Standard & Poor’s in December raised the Philippines’ sovereign debt outlook to positive on improved governance and public finances, bringing it closer to investment-grade status.
“Ayala Land is in the best position to capitalize on the economy’s growth momentum because it is in everything from housing to retail to offices, and geographically it is everywhere,” Richard Laneda, an analyst at Manila-based COL Financial Group Inc., said.
Profit growth may decelerate after coming from a high base in 2012, he said. Growth in net income has been slowing, rising 35 percent in 2010 and 31 percent in 2011.
The builder, based in Manila, has diversified its residential portfolio into five brands selling homes from P400,000 to P35 million. Its housing business accounts for almost half of earnings.
“From a total fundamental standpoint, we see this market will continue to be robust,” Aquino said, citing the shortage of homes across the country.
For more details on Ayala Land residential projects,
you may contact Reby Ramirez: 0922.883.9308 / 0916.4044.555 / 0919699.3572 or reby_ramirez@yahoo.com.
For latest information on the Philippine Real Estate
Industry and the Real Estate Service Act (RA9646), please visit www.ra9646.com.ph.
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