D.m. Wenceslao & Associates, Inc. · PSE:DMW
D.m. Wenceslao & Associates — H1 2024 Earnings Presentation
31 slides from D.m. Wenceslao & Associates's earnings presentation, Aug 14, 2024
Slide 1: 1H 2024 Analysts' Briefing
1H 2024 Analysts’ Briefing August 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 25 Sustainability
Slide 4: Metro Manila Office Market Update
Metro Manila Office Market Update Metro Manila Office Supply Forecast, end 2023 and 2027 POGO Ban Impact: It’s 2024, Not 2019 10% Location end of 2023 end of 2027F 1,300 1,297 1,295 1,292 1,290 1,287 1,284 1,282 1,279 1,277 1,274 1,271 1,269 1,266 1,264 1,261 9% 10% 1,258 1,256 1,253 1,251 1,248 1,2
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
2 Property Market Overview 5 Valuation of Assets in Aseana 8 Development Milestones 15 Operating and Financial Highlights 5 25 Sustainability
Slide 7: Updated summary of land holdings in Aseana City as of June 2024
Updated summary of land holdings in Aseana City as of June 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 Lan
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% Php1.7 Billion Net Cash Position ~Php250 Billion
Slide 9: Agenda
2 Property Market Overview 5 Valuation of Assets in Aseana 8 Development Milestones 15 Operating and Financial Highlights 8 25 Sustainability
Slide 10: Commercial Development Milestones: PARQAL
Commercial Development Milestones: PARQAL 9
Slide 11: Key Project Completions Drive Sustained Growth
Key Project Completions Drive Sustained Growth 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 2023-1H2024 8912 Asean Ave Parqal 58 Jupiter 10
Slide 12: Residential Pipeline: MIDPARK TOWERS
Residential Pipeline: MIDPARK TOWERS Construction Progress 84% 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 Redemptorist-Aseana LRT Station 13
Slide 15: Aseana City Loop
Aseana City Loop Nie PIT + ASEANA CITY LOOP + WOR i "NORTHBOUND ROUTE > =) SOUTHBOUND ROUTE — PITx ) SM Mall of Asia PAVCIEIN EMS EWI SESY) ) St. John Paul II Chapel 8912 Asean Ave. ; ? Pargal (Abueva Drive) » Parqal (lmao Drive) ; Pargal (lmao Drive) St. John Paull Il Chapel Nissan (Bradco Ave.) Ni
Slide 16: Agenda
2 Property Market Overview 5 Valuation of Assets in Aseana 8 Development Milestones 15 Operating and Financial Highlights 15 25 Sustainability
Slide 17: 1H2024 Net Income Rises to ₱918 million
1H2024 Net Income Rises to ₱918 million PHP 1H2024 1H2023 Change Rentals Land P 679,968,273 P 596,685,906 +14% Building 669,262,347 419,832,406 +59% Other revenues 223,161,822 155,465,397 +44% 1,572,392,442 1,171,983,709 +34% Land Sales - - N/A P1.8 billion Sale of condominium units 234,821,537 703,
Slide 18: Consumption Driven Profitability Through Land Leases and Mixed-Use Assets
Consumption Driven Profitability Through Land Leases and Mixed-Use Assets Revenue Breakdown 1H2024 % to revenues Rentals Land P 679,968,273 37% Building & other rental 892,424,169 49% Sale of condominium units 234,821,537 13% Construction contracts 11,382,118 1% Total Revenues 1,818,596,097 Gross Pr
Slide 19: Opening 2024: The Landmark in Ayala Mall Manila Bay
Opening 2024: The Landmark in Ayala Mall Manila Bay 18 18
Slide 20: In Focus: Leasing
In Focus: Leasing P1.6 Billion 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 21: 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 30% 37% 21% 8% 12% 1H2023 1H2024 % to Total Revenues 58% 86% Land (PHP mm) 597 680 Building 420 669 2021 2022 2023 1H2024 Other Revenues 155 223
Slide 22: In Focus: Residential
In Focus: Residential Residential sales % to Revenue contribution P234 Million total revenues We are complementing the speed of development in the area with 2021 18% Accounted for 13% of total revenues on the back of residential offerings in the mid-income and upscale categories, 2022 30% accounts t
Slide 23: Superior Margins
Superior Margins Gross Profit (PHP mm) Operating Profit (PHP mm) 83% 71% 77% 76% 72% 65% 64% 52% 3,245 2,486 2,728 2,845 2,930 2,136 1,383 1,158 2021 2022 2023 1H2024 2021 2022 2023 1H2024 Gross Profit Gross Profit Margin Operating Profit Operating Profit Margin EBITDA(1) (PHP mm) Net Profit (PHP mm
Slide 24: Financial Strength Supports Growth Aspirations
Financial Strength Supports Growth Aspirations Debt To Equity(1) (%) Return on Equity(2) (%) 25% 14% 12% 8% 7% 9% 9% 6% 2021 2022 2023 1H2024 2021 2022 2023 1H2024 Current Ratio(3) (x) Asset to Equity(4) (x) 2.8x 2.9x 1.7x 1.6x 1.5x 1.5x 1.4x 1.4x 2021 2022 2023 1H2024 2021 2022 2023 1H2024 Notes: D
Slide 25: Summary and Outlook
Summary and Outlook 1H2024 Summary 2024 Outlook • Consolidated revenues amounted to ₱1.8 billion and net • Sustained strong tenant take-up across the portfolio, income rose to ₱918 million. particularly from logistics and traditional tenants, will continue to improve occupancy rates. • Leasing reven
Slide 26: Agenda
2 Property Market Overview 5 Valuation of Assets in Aseana 8 Development Milestones 15 Operating and Financial Highlights 25 25 Sustainability
Slide 27: D.M. Wenceslao's Five Pillars of Sustainability
D.M. Wenceslao’s Five Pillars of Sustainability 26
Slide 28: Corporate Sustainability Assessment: 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 27
Slide 29: Q&A
Q&A www.dmwai.com www.aseanacity.com iro@dmwai.com 28
Slide 30: Appendix: Consolidated Statements of Profit or Loss
Appendix: Consolidated Statements of Profit or Loss PHP 1H2024 1H2023 Change Rentals Land P 679,968,273 P 596,685,906 +14% Building 669,262,347 419,832,406 +59% Other revenues 223,161,822 155,465,397 +44% 1,572,392,442 1,171,983,709 +34% Land sales - - N/A Sale of condominium units 234,821,537 703,5
Slide 31: Appendix: Consolidated Statements of Financial Position
Appendix: Consolidated Statements of Financial Position PHP 1H2024 2023 Current Assets 25,251,630,928 25,236,609,946 Non-current Assets 27,812,063,912 27,114,537,736 Total Assets 53,063,694,840 52,351,147,682 Current Liabilities 8,638,822,762 8,295,640,614 Non-current Liabilities 5,297,641,423 5,365
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