Avaland Bhd chief executive officer Apollo Bello Tanco.
PETALING JAYA: Avaland Bhd
, controlled by Philippine property giant Ayala Land Inc, is actively looking to buy more land in Malaysia to “bolster future earnings”.
At the moment, Avaland already owns a landbank of 194.4 acres across the Klang Valley, with an estimated gross development value of RM11.6bil.
The property developer, formerly known as MCT Bhd, spoke briefly about its landbank expansion in the latest filing with Bursa Malaysia as it reported a 47.7% year-on-year (y-o-y) increase in net profit for the third quarter of financial year 2024 (3Q24).
Its net profit rose to RM25.44mil in 3Q24, led by advanced construction work progress from ongoing projects and the take-up of projects launched this year, as third-quarter revenue jumped by 48.2% y-o-y to RM231.53mil.
Existing projects, namely Alira Subang Jaya, Aetas Damansara and various developments in Cyberjaya, are seeing significant construction progress.
Meanwhile, Casa Embun Phase 2 and Amika Residences – both launched earlier in 2024 – have seen “satisfactory” take-up, it said.
However, it did not disclose the take-up rates. Three other developments launched this year are Aetas Seputeh, Anja Residences & Signature Retail and Sanderling 2.
With improved profitability in the quarter, Avaland’s earnings per share rose to 1.75 sen.
It did not declare a dividend for the quarter.
Cumulatively, for the first nine months ended Sept 30, 2024 (9M24), net profit more than doubled to RM68.21mil from RM28.48mil in the previous corresponding period.
Revenue increased by nearly 92% y-o-y to RM664.4mil.
Apollo Bello Tanco, chief executive officer of Avaland, said the group’s property sales have risen by 60.4% y-o-y to RM683.7mil in 9M24.
“The improved sales performance was driven by encouraging take-up for the group’s ongoing projects, namely, Aetas Damansara (100%), Phase 1 of Casa Embun (100%), Sanderling (100%), Alira Subang Jaya (97%) and Alora Residences (46%),” he said.
As at Sept 30, 2024, Avaland’s unbilled sales stood higher at RM964mil, providing the group with “strong” earnings visibility over the next few years.
Nevertheless, the group remains cautiously optimistic of its prospects, with its existing landbank providing earnings visibility for the next 10 years.
