Ayala Land Inc. Reports Q1 Net Income Down 41% Due To Taal Eruption And ECQ

Based on the provided articles, Ayala Land Inc.'s (ALI) first quarter 2020 performance was significantly impacted by both the Taal volcanic eruption and the enhanced community quarantine (ECQ) due to the coronavirus pandemic.

Ayala Land's net income fell by 41% year-on-year to PHP4.3 billion, while revenues dropped by 28% to PHP28.4 billion.

The property development segment was hit hardest with revenues falling by 38% to PHP17.2 billion due to lower project bookings and the impact of Taal on sales in Southern Luzon. This decline was exacerbated by construction activity interruptions caused by ECQ measures.

Commercial leasing operations also suffered, with shopping center revenues down 9% to PHP4.6 billion and hotel and resort revenues falling 17% to PHP1.6 billion due to the closure of these facilities during ECQ.

In response to the crisis, Ayala Land has implemented several initiatives such as waiving approximately PHP2.6 billion worth of rent for tenants in its shopping malls and earmarking PHP600 million to assist no-work-no-pay workers within their ecosystem.

Despite the challenges, ALI remains optimistic about a gradual recovery post-ECQ and believes that once business conditions normalize, their products and services will be well-positioned to benefit from renewed economic growth.