PROPERTY FIRMS posted double-digit growth in 2007 as they added more projects and controlled expenses.  Ayala Land, Inc. (ALI), the country’s largest property developer, said on Friday that it posted a 13.44% increase in net income to P4.39 billion amid flat revenues and a decline in cost and expenses. 

Meanwhile, Sy-led SM Prime Holdings, Inc., the country’s largest shopping mall developer and operator, registered an 11.11% increase in net income in 2007 to P6 billion with the opening of three new malls and expansion of existing three malls. 

The two listed companies allotted a total of P30.3 billion to expand their respective businesses. 

In a statement, ALI said that its net income increased as a result of ‘tight control of operating expenses.’

‘Overall net operating income margin increased to 34% from 31% in 2006 with residential development and corporate business contributing most of the improvement,’ it said. 

Consolidated revenues hit P25.71 billion in 2007, up by 0.59% from P25.56 billion the previous year. Costs and expenses dipped by 1.11% to P19.65 billion from P19.87 billion. 

General and administratives expenses inched up by 4.21% to P2.72 billion from P2.61 billion due to ‘continuing organizational buildup to address aggressive expansion plans for the future.’ 

This year, ALI has allotted an ‘unprecedented’ P24.3 billion for capital and project expenditures to underscore the ‘continued high levels of activity across all business lines.’ 

In 2007, it spent P15.2 billion for project and capital expenditures.  Of the funds allocated for 2008, 42% will go to residential development while 30% will go corporate business with a 42% and 30% share.

Shopping centers and strategic land bank will have a 14% and 10% allocation, respectively.  SM Prime, for its part, is spending P6 billion to open SM Supercenter Rosales in Pangasinan, SM City Baliuag in Bulacan and SM City Marikina and expand Metro Manila malls SM City Fairview and SM Megamall. 

This, as the company said it posted a 16% increase in revenues to P15.3 billion on rental from new malls.  The company inaugurated three new malls last year, namely SM City Bacolod, with a gross floor area of 61,413 square meters; SM City Taytay with a gross floor area of 91,920 square meters; and SM Supercenter Muntinlupa, with a gross floor area of 53,986 square meters. 

It also expanded three malls: SM City Pampanga, SM City Cebu, and SM Mall of Asia.