By Jenniffer B. Austria

AYALA Land had a second straight decline in quarterly profit in the fourth quarter as costs rose faster than sales, but its full-year profit still rose 10 percent to P4.8 billion last year from P4.4 billion the year before.

The Philippines? largest developer posted a 24-percent fall in net income in the October-December quarter, to P969 million from P1.27 billion. That happened as sales rose P20 percent to P9.75 billion but costs and expenses soared 23 percent to P7.88 billion.

The developer said last year?s profit came as consolidated revenue grew 31 percent to P33.7 billion from P25.7 billion.

Profit rose as a result of strong sales to middle-income families and those buying cheaper housing units, Ayala Land told the Stock Exchange.

The company?s residential housing segment accounted for the bulk of last year?s revenue, which rose 18 percent to P15.2 billion from P12.8 billion, Ayala Land president Jaime Ayala said.

Ayala Land offshoots Alveo Land and Avida Land, which cater to middle-income and lower-income families, respectively, registered growth rates of 33 percent and 38 percent, the company said.

Ayala Land Premier, which caters to the high- income segment, generated P7.7 billion in revenue, but the parent?s sales of high-end condominium units fell 6 percent.

The developer?s revenue from its shopping centers also rose, and by 3 percent to P4.3 billion, as the total area that it could lease out grew 2 percent to 887,112 square meters.

The company last year opened stage 2 of Greenbelt 5, Glorietta 5, and the Terraces at Ayala Center. But it closed down Glorietta 2 and Park Square 2 to redevelop Ayala Center.

The company is opening another mall in Angeles City in Pampanga this year, but Jaime Ysmael, Ayala Land?s chief finance officer, said 2009 would be difficult because of the global economic downturn.

He said there would be pressure on the revenue side as the Filipinos working abroad, some of its top customers, might be sending less money in 2009 as a result of the crunch.

Ayala Land planned to cut project and capital spending to P17.4 billion this year from P18.9 billion last year, Ysmael said. With Bloomberg