D.m. Wenceslao & Associates, Inc. · PSE:DMW
D.m. Wenceslao & Associates — Q1 2024 Earnings Presentation
30 slides from D.m. Wenceslao & Associates's earnings presentation, May 14, 2024
Slide 1: 1Q 2024 Analysts' Briefing
1Q 2024 Analysts’ Briefing May 14, 2024 0
Slide 2: Disclaimer
Disclaimer The information in this document has been prepared by D.M. Wenceslao & Associates, Incorporated (“DMW”) and does not constitute a recommendation regarding the securities of DMW. The statements contained in this document speak only as at the date as of which they are made, and DMW expressl
Slide 3: Agenda
2 Property Market Overview 5 Valuation of Assets in Aseana 8 Development Milestones 15 Operating and Financial Highlights 2 24 Sustainability
Slide 4: Metro Manila Office Market Update
Metro Manila Office Market Update Metro Manila Office Supply Forecast, end 2023 and 2027 Bay Area will account for 11% of 1.78mn sqms new supply in 2024-2027 change in % to new Location end of 2023 end of 2027 % change sq.m. supply 250K 2024F 2025F 2026F 2027F Makati CBD 3,367,000 3,420,000 53,000 2
Slide 5: Metro Manila Residential Market Update
Metro Manila Residential Market Update Metro Manila Residential Supply Forecast, end-2023 and 2026 Location end of 2023 end of 2026 change in units % change % of new supply Alabang 5,660 8,440 2,780 49% 11% Araneta Center 5,140 5,140 0 0% 0% Eastwood City 9,630 9,630 0 0% 0% Fort Bonifacio 42,550 46
Slide 6: Agenda: Valuation of Assets in Aseana
2 Property Market Overview 5 Valuation of Assets in Aseana 8 Development Milestones 15 Operating and Financial Highlights 5 24 Sustainability
Slide 7: Updated summary of land holdings in Aseana City as of March 2024
Updated summary of land holdings in Aseana City as of March 2024 Land Used/Allocated Remaining Land Reserves for Development (311,881 sq.m.) (311,656 sq.m.) Land Allocated Completed for Future Sales Properties (4,218 sq.m.) (36,659 sq.m.) Land Allocated for Future Leases (4,532 sq.m.) Land Leased La
Slide 8: Value of DMW's Aseana City Assets as of December 31, 2023
Value of DMW’s Aseana City Assets as of December 31, 2023 Colliers / Third Party Valuation of DMW’s Aseana City Assets PHP246 Billion Valuation of DMW’s Assets in Aseana Completed and Pipeline properties Land currently leased-out Php58B Php68B 28% 23% Php1.8 Billion Net Cash Position ~Php250 Billion
Slide 9: Agenda: Development Milestones
2 Property Market Overview 5 Valuation of Assets in Aseana 8 Development Milestones 15 Operating and Financial Highlights 8 24 Sustainability
Slide 10: Commercial Development Milestones: PARQAL
Commercial Development Milestones: PARQAL Commenced Operations Sep 30, 2023 9
Slide 11: Hypergrowth Stage: Massive Recent Completions
Hypergrowth Stage: Massive Recent Completions Total Building Leasable Floor Area (sq.m.) Office Retail and F&B 235,846 22% 162,351 162,351 15% 15% 90,712 78% 23% 85% 85% 77% 2020 2021 2022 2023-1Q2024 8912 Asean Ave Parqal 58 Jupiter 10
Slide 12: Residential Pipeline: MIDPARK TOWERS
Residential Pipeline: MIDPARK TOWERS Construction Progress 82% 11
Slide 13: Pipeline of Premier Assets
Pipeline of Premier Assets Aseana Plaza (formerly Aseana Five and Six) Commercial Leasing • After Parqal, close to ~200,000sqms of Gross Leasable Area will be added to our portfolio in the medium term with the planned completions of 1) Aseana Plaza and 2) Aseana Mainstreet 2. One Parq Suites Residen
Slide 14: LRT1 Cavite Extension Operational by 2024
LRT1 Cavite Extension Operational by 2024 13
Slide 15: Aseana City Loop
Aseana City Loop Nias PIT + ASEANA CITY LOOP + WOR . NORTHBOUND ROUTE =9 SOUTHBOUND ROUTE PITx SM Mall of Asia Ayala Malls Manila Bay @ St. John Paul Il Chapel 8912 Asean Ave. ; » Parqal (Abueva Drive) Parqal (lmao Drive) * Pargal (Imao Drive) St. John Paull Il Chapel Nissanl(Bradcolave:) Nissan (Br
Slide 16: Agenda: Operating and Financial Highlights
2 Property Market Overview 5 Valuation of Assets in Aseana 8 Development Milestones 15 Operating and Financial Highlights 15 24 Sustainability
Slide 17: 1Q2024 Net Income Grows to ₱551 million
1Q2024 Net Income Grows to ₱551 million PHP 1Q2024 1Q2023 Change Rentals Land P 343,922,521 P 312,725,698 +10% Building 320,009,337 207,222,429 +54% Other revenues 126,037,054 80,931,640 +56% 789,968,912 600,879,767 +31% Land Sales - - N/A P940 million Sale of condominium units 147,565,295 427,239,8
Slide 18: Consumption Driven Profitability Through Land Leases and Mixed-Use Assets
Consumption Driven Profitability Through Land Leases and Mixed-Use Assets Revenue Breakdown 1Q2024 % to revenues Rentals Land P 343,922,521 37% Building & other rental 446,046,391 47% Sale of condominium units 147,565,295 16% Construction contracts 3,007,136 0% Total Revenues 940,541,343 Gross Profi
Slide 19: In Focus: Leasing
In Focus: Leasing P790 Million Land We pay particular attention to recurring income sources to provide our lease with Ayala Land provides for a us with higher earnings visibility. We primarily target traditional minimum guaranteed companies, including logistics, BPOs, and tourism-related businesses.
Slide 20: Robust Leasing Activities
Robust Leasing Activities Recurring Income Contribution(1) (%) Total Leased Land Area (sq.m.) Total recurring revenues 186,246 186,246 166,015 37% 150,444 29% 34% 19% 7% 13% 1Q2023 1Q2024 % to Total Revenues 55% 84% Land (PHP mm) 313 344 Building 207 320 2021 2022 2023 1Q2024 Other Revenues 81 126 T
Slide 21: In Focus: Residential
In Focus: Residential Residential sales % to Revenue contribution P148 Million total revenues We are complementing the speed of development in the area with 2021 18% Accounted for 16% of total revenues on the back of residential offerings in the mid-income and upscale categories, 2022 30% accounts t
Slide 22: Superior Margins
Superior Margins Gross Profit (PHP mm) Operating Profit (PHP mm) 83% 71% 77% 76% 72% 65% 65% 52% 3,245 2,486 2,728 2,845 2,930 2,136 714 615 2021 2022 2023 1Q2024 2021 2022 2023 1Q2024 Gross Profit Gross Profit Margin Operating Profit Operating Profit Margin EBITDA(1) (PHP mm) Net Profit (PHP mm) 77
Slide 23: Financial Strength Supports Growth Aspirations
Financial Strength Supports Growth Aspirations Debt To Equity(1) (%) Return on Equity(2) (%) 25% 14% 12% 8% 8% 9% 9% 8% 2021 2022 2023 1Q2024 2021 2022 2023 1Q2024 Current Ratio(3) (x) Asset to Equity(4) (x) 2.8x 2.8x 1.7x 1.6x 1.5x 1.5x 1.4x 1.4x 2021 2022 2023 1Q2024 2021 2022 2023 1Q2024 Notes: D
Slide 24: Summary and Outlook
Summary and Outlook 1Q2024 Summary 2024 Outlook • Consolidated revenues amounted to ₱940 million and net • Sustained strong tenant take-up across the portfolio will income increased to ₱551 million. continue to improve occupancy rates and boost rental revenues and margins. • Leasing revenues soared
Slide 25: Agenda: Sustainability
2 Property Market Overview 5 Valuation of Assets in Aseana 8 Development Milestones 15 Operating and Financial Highlights 24 24 Sustainability
Slide 26: D.M. Wenceslao's Five Pillars of Sustainability
D.M. Wenceslao’s Five Pillars of Sustainability 25
Slide 27: 89th Percentile Rank or Top 11%
Corporate Sustainability Assessment 89th Percentile Rank or Top 11% Among a global universe of S&P-assessed real estate companies as of Jan 2024 26
Slide 28: Q&A
Q&A www.dmwai.com www.aseanacity.com iro@dmwai.com 27
Slide 29: Appendix: Consolidated Statements of Profit or Loss
Appendix: Consolidated Statements of Profit or Loss PHP 1Q2024 1Q2023 Change Rentals Land P 343,922,521 P 312,725,698 +10% Building 320,009,337 207,222,429 +54% Other revenues 126,037,054 80,931,640 +56% 789,968,912 600,879,767 +31% Land sales - - N/A Sale of condominium units 147,565,295 427,239,89
Slide 30: Appendix: Consolidated Statements of Financial Position
Appendix: Consolidated Statements of Financial Position PHP 1Q2024 2023 Current Assets 25,464,151,907 25,236,609,946 Non-current Assets 27,900,396,529 27,114,537,736 Total Assets 53,364,548,436 52,351,147,682 Current Liabilities 9,094,339,967 8,295,640,614 Non-current Liabilities 5,534,803,380 5,365
D.M. Wenceslao & Associates — Q1 2024 Earnings Presentation on 6ix