ALI remains ‘optimistic’ for 2012

SUNDAY, 22 JANUARY 2012 18:00 MIGUEL R. CAMUS / REPORTER

PROPERTY developer Ayala Land Inc. (ALI) said profits in the first nine months of 2011 were likely sustained in the fourth quarter as it sets an “optimistic” outlook for the current year, its president Antonino Aquino told reporters in a chance interview last week.

ALI, the Philippines’ largest builder in terms of market value, earlier reported that net income in the nine months to September rose 33 percent to P5.23 billion. Revenues were up 17 percent to P32.63 billion while pre-sales, an indicator for future revenues, hit P38.9 billion.

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Aquino declined to provide details as the developer has yet to release official financial results for the period.

ALI is a full-range property developer with divisions selling residential lots and condominiums in addition to operating shopping malls, office and hotels.

Aquino said ALI remains optimistic for the current, mirroring the outlook for the country’s real-estate sector.

Some analysts are already pointing to easing worries over the reported oversupply in certain vertical residential segments given the Philippines’ massive housing backlog. These concerns helped temper demand for property stocks in 2011.

Additional stimulus this year would come from easing monetary policy with the Bangko Sentral’s recent decision to cut its benchmark interest rate by a quarter of a percentage point to 4.25 percent.

Low interest rates should lead to low monthly amortization on housing loans, making home purchases affordable for more buyers, stock brokerage firm CitisecOnline said in a January 20 research note. Despite the huge supply, we are confident that property demand will remain robust this year.

ALI shares rose 2.74 percent to P17.98 each on Friday, giving it a market value of P234.16 billion.

The builder has risen almost 14 percent in two weeks, faster than the property subindex, which has gained 11.3 percent since January 6
.