Ayala Land Inc. · PSE:ALI
Ayala Land — Investor Presentation (March 2024)
44 slides from Ayala Land's investor presentation, March 2024
Slide 1: FY2023 Investor Presentation
FY2023 Investor Presentation March 2024
Slide 2: Contents
Contents • CEO’s Message • Key Themes/Strategy • FY2023 Results • Company Background Ayala Land, Inc. 2
Slide 3: CEO's Message
CEO’s Message 1. 2023 was a good year for Ayala Land, with all our business lines hitting their stride. 2. We began our program to take advantage of high-value market opportunities and drive for quality. 3. We are optimistic about opportunities for 2024 but pragmatic in addressing potential challeng
Slide 4: FY2023 Performance Highlights
FY2023 Performance Highlights TOTAL REVENUES NET INCOME CAPEX NET GEARING P148.9B +18% P24.5B +32% P86.2B 0.75:1 Segment Revenues PROPERTY DEVELOPMENT COMMERCIAL LEASING SERVICES P92.3B +14% P41.7B +25% P11.5B +36% RESIDENTIAL SHOPPING CENTER NET CONSTRUCTION P77.2B +22% P21.1B +31% P6.6B +56% OFFIC
Slide 5: High-value market opportunities: residential sales and launches
We began our program to take advantage of high-value market opportunities and drive for quality. Ayala Land Premier Signature Line Residential Sales: FY23 P113.9B +9% AVERAGE MONTHLY SALES LAUNCHES P9.5B P75.9B (25 Projects) P37.7B in 4Q23 57% Premium; 43% Core PRODUCT BREAKDOWN PRODUCT BREAKDOWN 65
Slide 6: Mall reinvention and flagship malls
We began our program to take advantage of high-value market opportunities and drive for quality. GLORIETTA FLAGSHIP MALLS REINVENTION P13B CAPEX • Greenbelt 2 • Trinoma • Glorietta • Ayala Center Cebu TRINOMA MALLS 2.1M sqm GLA 34 Malls, 63 Amenity Retail OCCUPANCY 84% (vs 81% FY22) Ayala Land, Inc.
Slide 7: Hotels and resorts reinvention
We began our program to take advantage of high-value market opportunities and drive for quality. PANGULASIAN HOTELS & RESORTS REINVENTION P5.5B CAPEX • 2 El Nido Resorts • 5 Hotels HOTELS RESORTS LAGEN 4,452 rooms Branded: 660 Seda: 3,224 El Nido: 187 Lio B&Bs: 50 Circuit: 255 Sicogon B&Bs: 78 OCCUP
Slide 8: Offices portfolio and BPO towers
We began our program to take advantage of high-value market opportunities and drive for quality. VERTIS NORTH BPO TOWER 4 & 5 82K SQM OFFICES 1.4M sqm GLA 65 BPOs, 6 HQs OCCUPANCY 92% (vs 88% FY22) MIX LOCATION 80% BPO 79% Metro Manila MRT-7 11% HQ 70% in top CBDs 1% POGO and OTHERS (Makati, BGC and
Slide 9: Optimistic about 2024 but pragmatic on higher-for-longer rates
We are optimistic about opportunities for 2024 but pragmatic in addressing potential challenges of a ’higher-for-longer’ interest rate regime. Ayala Land, Inc. 9
Slide 10: 2024 Budget: P100B CAPEX; P115B in Launches
2024 Budget: P100B CAPEX; P115B in Launches Residential P115B PROPERTY LAUNCHES DEVELOPMENT 34% Estate Development P100B Residential 80% PREMIUM 20% Core 44% Metro Manila 24% P15B Comm’l and Industrial 38% South Luzon --- 7% Central Luzon 52% Horizontal 11% VisMin 48% Vertical 2024E CAPEX P100B COMM
Slide 11: Asset-right strategy: utilizing land bank
Asset-right strategy: Utilize an average of 800 ha annually from our existing land bank END 2023 LAND BANK: 11,240 HA 2024 UTILIZATION 964 HA SITE LOCATION USAGE Commercial/Industrial Leasing Outside VisMin NCR 2% 9% Estates 12% 20% 28% Residential North South 31% Roads-Open Luzon Luzon Space 48% In
Slide 12: Key strategic initiatives
We will continue to grow the business through key strategic initiatives 1. 2. 3. Lean on our Get our leasing Expand our leasing premium assets to operate footprint with residential brands at their full additional GLA by and horizontal potential 2028 projects using our • • Malls 800K sqm Offices 500K
Slide 13: Contents
Contents • CEO’s Message • Key Themes/Strategy • FY2023 Results • Company Background Ayala Land, Inc. 13
Slide 14: Key Themes/Strategy
Key Themes/Strategy 1. The premium residential segment will continue to drive property demand in 2024, and we are well-positioned to seize high-value market opportunities. 2. Our mall reinvention plan will be executed strategically to ensure minimal operational and revenue disruption. 3. Office leas
Slide 15: Young population, urbanization and remittances fuel demand
A young population, urbanization, and remittances will fuel demand in the long term. By FY30E, the population is expected Population (in millions) In Mn CAGR Median Age to grow to 125M, with median age 300 274 1.6% 1.5% 39.0 still in the 25–29-year age group 250 1.4% • The PH (115M) has the second l
Slide 16: Premium residential segment to drive demand in 2024
The premium residential segment will continue to drive property demand in 2024, and we are well-positioned to seize high-value market opportunities. Take-up grew 3x PREMIUM SEGMENT TAKE-UP VALUE Forecasts show PH DOLLAR MILLIONAIRES since the end of the (In Php B) strong high-income pandemic growth
Slide 17: Mall reinvention plan
Our mall reinvention plan will be executed strategically to ensure minimal operational and revenue disruption. Phased execution and a JIT strategy for tenant replacement to ensure minimal operational and revenue disruption • Exterior and interior features will be refreshed to reflect a modern and fr
Slide 18: Office leasing expansion on winner sites
Office leasing expansion is focused on winner sites to capture “flight to quality” and sector growth prospects. COLLIERS PIPELINE +500K GLA by 2028 MAKATI CBD BGC VERTIS NORTH NUVALI EVOCITY MANILA STANDARD Total of 2.5M jobs by 2028 ATRIA • +1.1M jobs from 2022-2028 • 54% outside Metro Manila 2028E
Slide 19: SEDA targets larger share of leisure tourism
SEDA aims to target a larger share of the leisure tourism market FOREIGN TOURISTS: 5.4M in 2023 (2x 2022); 2024F 7.7M, 2030F 16M DOMESTIC TOURISTS : 44M in 2023 (+10% YoY); 2024F 46M, 2030F 52M 82% Leisure 8% Business 10% Others +6% • Redefining The Seda Brand offering with premium differentiation •
Slide 20: Sustainability practices for Net Zero by 2050
We have the sustainability practices to support the Net Zero goal by 2050 NET ZERO TARGETS CIRCULAR ECONOMY ▪ Net Zero 2050: Completed scopes 1, 2, and 3 GHG ▪ 359 tons of plastic waste recycled into emissions inventory with a 2021 baseline, and a Net Zero construction materials, board-ups, and pall
Slide 21: Sustainability practices for Net Zero by 2050
We have the sustainability practices to support the Net Zero goal by 2050 RESOURCE EFFICIENCY CARBON FORESTS ▪ Renewable Energy Use: 111 commercial properties ▪ 586 ha over 6 sites (90% of total portfolio) ▪ 86% Carbon Neutrality Achievement with 3rd-party ▪ Ayala Land Offices and AREIT pledge to se
Slide 22: Land bank located to benefit from infrastructure growth
Our land bank is strategically located to benefit from infrastructure growth. INFRASTRUCTURE PROJECTS AND AYALA LAND LAUNCHED ESTATES/PROJECTS METRO MANILA CENTRAL LUZON SOUTH LUZON NORTH TO SOUTH LUZON LOCATION MM Subway North Luzon Expressway Cavite-Batangas Highway North-South Commuter 1. The Jun
Slide 23: Quality is Job #1
QUALITY IS JOB #1 RESIDENTIAL: LEASING AND HOSPITALITY: PREMIUM AND HORIZONTAL FOCUS REINVENTION AND MARKET EXPANSION 1. Lean on our premium residential brands and 1. Get leasing assets to operate at their full potential through horizontal projects; core projects launch on push reinvention initiativ
Slide 24: Contents
Contents • CEO’s Message • Key Themes/Strategy • FY2023 Results • Company Background Ayala Land, Inc. 24
Slide 25: Revenues of P148.8B +18%; Net Income of P24.5B +32%
Revenues of P148.8B +18%; Net Income of P24.5B +32% INCOME STATEMENT FY 2023 FY 2022 Change % (in Php millions) Total Revenues 148,857 126,556 22,302 18% GAE RATIO Real Estate 145,501 123,051 22,450 18% 6.0% Interest and Other Income 3,356 3,505 -148 -4% 5.7% in FY2022 Equity in Net Earnings of Asso
Slide 26: Revenue breakdown by segment
Healthy property bookings and higher leasing occupancy and rents fueled higher revenues. REVENUE BREAKDOWN FY 2023 FY 2022 Change % (in Php millions) Property Development 92,336 81,243 11,093 14% Residential 77,194 63,485 13,709 22% Healthy bookings and higher project completions Office for Sale 4,2
Slide 27: Stable margins across business segments
Stable margins across business segments MARGIN PERFORMANCE FY 2023 FY 2022 Property Development (Gross Profit) Residential Horizontal 45% 46% Vertical 38% 35% Higher ASPs of high-demand projects Office for Sale 43% 49% Sellout of high-margin projects Commercial and Industrial Lots 66% 70% Lot sales
Slide 28: Four new estates launched in 2023
Four new estates launched in 2023 BATANGAS TECHNOPARK CENTRALA 55 ha | Padre Garcia, Batangas 32 ha | Angeles, Pampanga SOUTHMONT ARILLO 789 ha | Silang, Cavite 62 ha | Nasugbu, Batangas Ayala Land, Inc. 28
Slide 29: Higher occupancy and rents boosted leasing revenues
Higher occupancy and rents boosted leasing revenues MALLS OFFICES HOTELS RESORTS 2.1M sqm GLA 1.4M sqm GLA 4,452 rooms Branded: 660 El Nido: 187 34 Malls, 63 Amenity Retail 65 BPOs, 6 HQs Seda: 3,224 Lio B&Bs: 50 Circuit: 255 Sicogon B&Bs: 78 OCCUPANCY OCCUPANCY OCCUPANCY 67% (+8 pt) 42% (+13 pt) 84
Slide 30: 2 malls and 420 hotel rooms opened in 2023
2 malls with 49k sqm, 420 hotel rooms opened in 2023 MALLS (ONE AYALA + VERMOSA) HOTELS (SEDA MANILA BAY+NUVALI) +49K SQM GLA +420 ROOMS AYALA MALLS ONE AYALA AYALA MALLS VERMOSA SEDA MANILA BAY Makati CBD Imus, Cavite Bay Area, Paranaque City 44K GLA (Nov 2023) 5K GLA (Dec 2023) 306 new rooms Fully
Slide 31: Capex spend of P86.2B
Capex spend of P86.2B Others CAPEX BREAKDOWN FY 2023 3% (in Php billions) Actual Residential 41.9 Residential Malls 5.4 Estate Development 49% Offices 2.5 16% Hotels and Resorts 1.2 Land Acquisition 18.3 Estate Development 14.0 Others 2.8 P86.2B Total 86.2 Land HISTORICAL CAPEX Acquisition 21% 109 8
Slide 32: Well-managed debt with 93% long-term, 77% fixed
Well-managed debt with 93% contracted long-term, 77% fixed; average borrowing cost of 5.0%, maturity of 5.1 years Total Borrowings: Php258.3B: Short-term Php16.9B (7%), Long-term Php232.0B (93%), Average Maturity 5.1 years Long-term Debt Maturity (in Php Billions) Short-term Debt Maturity (in Php Bi
Slide 33: Strong balance sheet with net gearing of 0.75:1
A strong balance sheet with a net gearing ratio of 0.75:1 Balance Sheet December December (in Php Millions) 2023 2022 Cash & Cash Equivalents 17,820 12,508 Total Borrowings 258,254 236,039 Stockholders’ Equity 319,929 293,665 Current Ratio 1.76 1.78 Debt-to-Equity Ratio 0.81 0.80 Net Debt-to-Equity
Slide 34: Contents
Contents • CEO’s Message • Key Themes/Strategy • FY2023 Results • Company Background Ayala Land, Inc. 34
Slide 35: We build places that people love!
Our Mission-Vision Enhancing land and enriching lives for more Filipinos Our Strategy We develop estates in key growth centers across the country to create sustainable communities and provide platforms for our residential, malls, offices, hotels, resorts, and logistics businesses to achieve market l
Slide 36: More than 35 years of creating sustainable communities
More than 35 years of creating sustainable communities ALI is incorporated Mixed-use Estates Launched (2010-2023) Forbes Park and ALI is listed NUVALI is • Arca South Makati CBD is launched • ALI Manila Bay • Altaraza developed • Broadfield • Alviera • Cresendo • Batangas • Atria Park District • The
Slide 37: Track record of expansion through various product offerings
A deep track record of expansion and growth through various product offerings Tower One Glorietta is ALI launches is completed UP Technohub established Market! Market! at the 1st REIT is completed BGC opens Seda Hotel brand is ALI acquires established El Nido Resorts Trinoma opens AVIDA ALVEO Amaia
Slide 38: Most established Philippine property developer
Ayala Land is the most established Philippine property developer • Incorporated in 1988, publicly listed in July 1991 • 51.0% owned by Ayala Corporation • 6th largest PLC in the Philippines; 5th largest property developer in ASEAN by market cap Revenues and Total Assets (in Php Billions) Revenues To
Slide 39: Diversified portfolio to drive long-term shareholder value
A diversified portfolio will drive long-term shareholder value • 33 Mixed-Use • 16 in Metro Manila 11,240 HA 52 • • 2 Tourism 5 Residential • • 13 in South Luzon 11 in Central/North/Southern Luzon LANDBANK ESTATES • • 5 Commercial 7 Industrial • 12 in VisMin BALANCED AND COMPLEMENTARY BUSINESSES PRO
Slide 40: Strategically structured business lines
Strategically structured business lines to capitalize on market opportunities and mitigate risks Estate Property Commercial Service Strategic Development Development Leasing Businesses Investments 52 Estates Premium Residential Malls: 2.1M sqm GLA Construction Philippines • 34 Mixed-Use 1. Ayalaland
Slide 41: Nationwide presence supported by 11,240-ha land bank
Solid nationwide presence, supported by a 11,240-ha land bank Present in 57 growth centers across the Philippines Tuguegarao Baguio Pangasinan Gross Land Bank (in hectares) Tarlac Cabanatuan Pampanga SJDM Anvaya, Bataan Bulacan 12,192 12,483 12,498 12,273 Cavite Metro Manila 11,624 Laguna Rizal 11,2
Slide 42: A highly trusted brand
A highly trusted Brand #1 #2 Mixed-Use Estates, Malls GLA size and location #1 #1 Residential Offices GLA Development #1 #3 Industrial Estate Hotel Development Rooms 42
Slide 43: ESG practices embedded in our business model
ESG practices are embedded in our business model AYALA LAND’S FOUR SUSTAINABILITY FOCUS AREAS 1 Site 2 Pedestrian 3 Resource 4 Local Economic Resilience Mobility, Transit Efficiency Development Connectivity Environmental Social Governance • Reduced and offset 85% of Scopes • Supported 1600 Social En
Slide 44: Investor Relations
Investor Relations Scan the QR code to join Website the IR mailing list ir.ayalaland.com.ph Email investorrelations@ayalaland.com.ph