D.m. Wenceslao & Associates, Inc. · PSE:DMW
D.m. Wenceslao & Associates — 9M 2024 Earnings Presentation
35 slides from D.m. Wenceslao & Associates's earnings presentation, Nov 13, 2024
Slide 1: 9M 2024 Analysts' Briefing
9M 2024 Analysts’ Briefing November 13, 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 6 Valuation of Assets in Aseana 9 Development Milestones 19 Operating and Financial Highlights 2 29 Sustainability
Slide 4: Metro Manila Office Market Update
Metro Manila Office Market Update Metro Manila Office Supply Forecast, 9M24A and 2027F Manageable Additional Office Supply in Manila Bay Area Location 9M2024 end of 2027F Bay Area Existing Stock & Upcoming Supply Makati CBD 3,398,000 3,442,000 434K Makati Fringe 721,000 874,000 Fort Bonifacio 2,697,
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: Expansionary Monetary Policy
Expansionary Monetary Policy BSP Reverse Date 2024F 2025F Repurchase Rate (%) 2024-10-16 6.00 BSP Policy 5.75% 4.50% 6.25 Rate Forecast 2024-08-15 2023-10-26 6.50 2023-03-23 6.25 Mortgage September 2023 2023-02-16 6.00 Rate 2024 Major PH 2022-12-15 5.50 Banks’ 5.00 7.25% 6.80% 2022-11-17 Average (1-
Slide 7: Valuation of Assets in Aseana
2 Property Market Overview 6 Valuation of Assets in Aseana 9 Development Milestones 19 Operating and Financial Highlights 6 29 Sustainability
Slide 8: Updated summary of land holdings in Aseana City as of September 2024
Updated summary of land holdings in Aseana City as of September 2024 Land Used/Allocated Remaining Land Reserves for Development (314,309 sq.m.) (309,228 sq.m.) Land Allocated Completed for Future Sales Properties (4,218 sq.m.) (36,659 sq.m.) Land Allocated for Future Leases (6,960 sq.m.) Land Lease
Slide 9: 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 10: Development Milestones
2 Property Market Overview 6 Valuation of Assets in Aseana 9 Development Milestones 19 Operating and Financial Highlights 9 29 Sustainability
Slide 11: Surging Foot Traffic in PARQAL
Surging Foot Traffic in PARQAL 10
Slide 12: 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 to 9M24 8912 Asean Ave Parqal 58 Jupiter 11
Slide 13: Residential Pipeline: MIDPARK TOWERS
Residential Pipeline: MIDPARK TOWERS Construction Progress 85% 12
Slide 14: DMW 5-Year Development Pipeline in Aseana City
DMW 5-Year Development Pipeline in Aseana City Aseana Plaza (formerly Aseana Five and Six) Commercial Leasing • Aseana Plaza Phase 1, office development with ~60,000sqms GLA, set to commence construction in 2025 • Aseana Plaza Phase 2, office development with ~70,000sqms GLA Residential • Workpads,
Slide 15: Office Bright Spot: Shipping, Manning, Logistics Sector
Office Bright Spot: Shipping, Manning, Logistics Sector Seabased as % of Seabased YoY YEAR TOTAL LANDBASED SEABASED total growth 2018 p 1,988,980 1,506,587 482,393 24% 7% 2019 p 2,156,742 1,649,012 507,730 24% 5% 2020 p 549,841 332,618 217,223 40% -57% 2021 p 742,796 397,279 345,517 47% 59% 2022 p 1
Slide 16: LRT 1 Cavite Extension Phase 1 Set to Begin Operations on November 16
LRT 1 Cavite Extension Phase 1 Set to Begin Operations on November 16 15
Slide 17: LRT-1 Extension Key Figures
~ 9,000,000 Total Population across Cities Traversed by LRT-1 ~ 800,000 Total Daily Passenger Capacity 45 minutes LRT 1 Travel Time Reduction (from 1 hour 10 minutes to 25 minutes commute from Baclaran to Cavite) Key Stations in the Bay Area • Redemptorist – Aseana • MIA • Asia World 16
Slide 18: Colliers' Report: Paving the Railway
Colliers’ Report: Paving the Railway By enhancing accessibility As the Philippines enters a Colliers believes that and connectivity through railway renaissance, railway infrastructure the development of rapid Manila’s Bay Area emerges projects will be a transit systems, offices as the crown jewel an
Slide 19: 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 20: Operating and Financial Highlights
2 Property Market Overview 6 Valuation of Assets in Aseana 9 Development Milestones 19 Operating and Financial Highlights 19 29 Sustainability
Slide 21: 9M2024 Net Income Climbs 8% to ₱1.4 Billion
9M2024 Net Income Climbs 8% to ₱1.4 Billion PHP 9M2024 9M2023 Change Rentals Land P 1,021,030,338 P 896,061,981 +14% Building 1,057,167,957 695,461,188 +52% Other revenues 351,500,762 241,774,524 +45% 2,429,699,057 1,833,297,693 +33% Land Sales - - N/A P2.7 billion Sale of condominium units 274,132,
Slide 22: Consumption Driven Profitability Through Land Leases and Mixed-Use Assets
Consumption Driven Profitability Through Land Leases and Mixed-Use Assets Revenue Breakdown 9M2024 % to revenues Rentals Land P 1,021,030,338 38% Building & other rental 1,408,668,719 52% Sale of condominium units 274,132,677 10% Construction contracts 12,481,393 0% Total Revenues 2,716,313,127 Gros
Slide 23: Landmark Manila Bay Supermarket & Foodcourt Opened
Landmark Manila Bay Supermarket & Foodcourt Opened October 25,2024 22 Source: (1) Jones Lang LaSalle, (2) Commission on Higher Education, (3) IT-BPM, (4) Colliers
Slide 24: In Focus: Leasing
In Focus: Leasing P2.4 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 25: Robust Leasing Activities
Robust Leasing Activities Recurring Income Contribution(1) (%) Total Leased Land Area (sq.m.) Total recurring revenues 186,246 183,818 166,015 38% 150,444 32% 39% 25% 9% 13% 9M2023 9M2024 % to Total Revenues 65% 89% Land (PHP mm) 896 1,021 Building 695 1,057 2021 2022 2023 9M2024 Other Revenues 242
Slide 26: In Focus: Residential
In Focus: Residential Residential sales % to Revenue contribution P274 Million total revenues We are complementing the speed of development in the area with 2021 18% Accounted for 10% of total revenues on the back of residential offerings in the mid-income and upscale categories, 2022 30% accounts t
Slide 27: Superior Margins
Superior Margins Gross Profit (PHP mm) Operating Profit (PHP mm) 83% 71% 77% 77% 72% 65% 63% 52% 3,245 2,486 2,728 2,845 2,930 2,136 2,084 1,707 2021 2022 2023 9M2024 2021 2022 2023 9M2024 Gross Profit Gross Profit Margin Operating Profit Operating Profit Margin EBITDA(1) (PHP mm) Net Profit (PHP mm
Slide 28: 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% 5% 2021 2022 2023 9M2024 2021 2022 2023 9M2024 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 9M2024 2021 2022 2023 9M2024 Notes: D
Slide 29: Summary and Outlook
Summary and Outlook 9M2024 Summary 4Q2024 Outlook • Consolidated revenues rose to ₱2.7 billion and net income • Sustained strong tenant take-up across the portfolio, climbed to ₱1.4 billion. particularly from shipping, manning, logistics and traditional tenants, will continue to improve office occup
Slide 30: Sustainability
2 Property Market Overview 6 Valuation of Assets in Aseana 9 Development Milestones 19 Operating and Financial Highlights 29 29 Sustainability
Slide 31: D.M. Wenceslao's Five Pillars of Sustainability
D.M. Wenceslao’s Five Pillars of Sustainability Good Governance Environmental People-Centric Economic Quality of Life and Ethical Stewardship Labor Practices Development Business Practice • Customer Health • Environmental • Business Conduct • Human Rights • Economic Value and Safety Compliance and E
Slide 32: 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 31
Slide 33: Q&A
Q&A www.dmwai.com www.aseanacity.com iro@dmwai.com 32
Slide 34: Appendix: Consolidated Statements of Profit or Loss
Appendix: Consolidated Statements of Profit or Loss PHP 9M2024 9M2023 Change Rentals Land P 1,021,030,338 P 896,061,981 +14% Building 1,057,167,957 695,461,188 +52% Other revenues 351,500,762 241,774,524 +45% 2,429,699,057 1,833,297,693 +33% Land sales - - N/A Sale of condominium units 274,132,677 8
Slide 35: Appendix: Consolidated Statements of Financial Position
Appendix: Consolidated Statements of Financial Position PHP 9M2024 2023 Current Assets 26,004,780,262 25,236,609,946 Non-current Assets 27,803,907,977 27,114,537,736 Total Assets 53,808,688,239 52,351,147,682 Current Liabilities 8,869,244,235 8,295,640,614 Non-current Liabilities 5,221,159,727 5,365
D.M. Wenceslao & Associates — 9M 2024 Earnings Presentation on 6ix