The details of the individual performance of each business segment are discussed as follows: 

Residential Development.  Residential revenues reached Php8.56 billion for the first six months of 2010, 25% higher than the Php6.85 billion reported during the same period last year with strong growth in bookings exhibited Ayala Land Premiere, Alveo and Avida. Ayala Land Premier (ALP) accounted for 47% of total residential revenues with Php4.05 billion for the first six months, up 32% year-on-year. The value of ALP bookings increased five-fold due to the strong sales of Park Terraces condominium units in Makati City and Santierra lots in NUVALI. Alveo and Avida meanwhile also posted revenue growth of 28% and 10%, respectively, for the first half of 2010 with steady progress on construction completion boosted by higher bookings from the success of new launches such as Meranti for Alveo and Avida Towers Alabang and Cebu for Avida.  

Together with newly launched fourth brand Amaia, the Company’s four residential brands launched a total of 7,091 units in the first six months, or 76% of the Company’s original target of 9,275 units for the year. With strong demand in the residential sector expected to continue, the Company has revised its full-year 2010 target to 11,640 units. The Residential business remained as the biggest contributor to NOI, accounting for 52% of total at Php2.69 billion. Residential NOI margins improved to 31%, from 29% the previous year. 

Shopping Centers.  Total revenues for Shopping Centers amounted to Php2.35 billion for the first half of 2010, 6% higher than in the same period last year. This was driven by the net expansion in occupied gross leasable area (GLA) as the addition of MarQuee Mall in Pampanga and improving occupancy rates at Greenbelt 5 and Market!Market! more than offset the closure of Glorietta 1. The Company’s value-oriented anchor tenants also continued to perform well with double digit increases in same-store sales growth. However, the revenue impact of the higher average occupancy rates (which reached 93% for all malls, from 91% in the first half of 2009), was tempered by a slight decline in average rental rates with lower per square meter building lease rates in MarQuee and Glorietta 5 compared with what was previously achieved in Glorietta 1. This also caused the drop in average shopping center NOI margins, which declined from 54% in the first six months of 2009, to 50% this year. The P1.17 billion in shopping centers NOI was 1% lower year-on-year and accounted for 22% of the Company’s total NOI.  

Corporate Business.  Revenues from the Company’s office building portfolio reached Php844 million in the first six months of 2010, compared with Php788 million for the same period last year. The 7% improvement in office building revenues was generated by the significant growth in occupied business process outsourcing office (BPO) GLA, which increased by 40,296 square meters compared with the end-June 2009. Occupancy on the BPO portfolio has now reached 67% (with a 79% lease-out rate) compared with 58% a year ago. Office revenues were further boosted by a 4% increase in average BPO lease rates due to both programmed rental escalations and a general improvement in outlook for the BPO sector as a whole. The contribution of the Company’s traditional headquarter-type office buildings declined slightly, with a 1% decline in average lease rates and a decrease in average occupancy rates from 97% to 95%. The expansion of the BPO portfolio also accounted for the growth in NOI, which increased 12% to Php465 million in the first half of 2010. This contributed 9% of the Company’s total NOI while margins also improved from 53% to 55% due to the significant improvement in the BPO portfolio. 

Strategic Landbank Management.  Revenues from the Strategic Landbank Management Group (SLMG) amounted to Php1.05 billion in the first six months, 58% higher than the same period last year, largely due to overrides on the successful sales performance of Park Terraces in Makati and Santierra in NUVALI. The strong revenue growth also led to an increase in NOI by 180% year-on-year to Php386 million, from Php138 million last year. This accounted for 7% of the Company’s total NOI, with NOI margins likewise improving from 21% in the same period last year to 37% this year. 

Visayas-Mindanao.  The Visayas-Mindanao group’s revenues declined by 31% to Php72 million in the first half of 2010 from Php105 million during the same period last year.  The drop resulted from a lower percentage completion of projects such as Alegria Hills in Cagayan de Oro, Plantazionne Verdana Homes (including Asyana) in Negros Occidental and Amara in Cebu, despite higher bookings during the period.  NOI contribution was Php4 million, less than 1% of total. 

Support Businesses.  The Support Businesses, namely Construction, Property Management and Hotels, generated combined revenues (net of inter-company eliminations) of Php4.57 billion during the first half of the year, 57% higher than the Php2.91 billion posted in the same period last year. The improvement came largely from the higher completion of external construction projects and improving hotel operations which yielded better occupancy rates and higher average room revenues. NOI for the Support Businesses in aggregate also improved by 13% to Php505 million (10% of total), while margins dropped to 11% from 15% in the same period last year due to the temporary decline in property management margins as discussed previously.

Equity in Net Earnings of Investees, Interest, Fees, Investment and Other Income