Ayala Land Inc. · PSE:ALI
Ayala Land — Q1 2024 Earnings Presentation
37 slides from Ayala Land's earnings presentation, May 16, 2024
Slide 1: 1Q 2024 Investor Presentation
1Q 2024 Investor Presentation May 2024
Slide 2: Contents
Contents • Key Messages from the CEO • 1Q 2024 Results • Company Background Ayala Land, Inc. 2
Slide 3: 1Q24 Key Messages from the CEO
1Q24 Key Messages from the CEO 1. Our businesses continued their upward trajectory with the property development segment leading the most remarkable improvements. 2. Despite the elusiveness of interest rate cuts, the various health metrics of our residential business are moving in the right directio
Slide 4: Businesses continued upward trajectory led by property development
1. Our businesses continued their upward trajectory with the property development segment leading the most remarkable improvements. TOTAL REVENUES NET INCOME CAPEX NET GEARING P41.0B +33% P6.3B +39% P18.8B 0.74:1 Segment Revenues PROPERTY DEVELOPMENT COMMERCIAL LEASING SERVICES P25.0B +47% P10.9B +8
Slide 5: Health metrics of residential business moving in the right direction
2. Despite the elusiveness of interest rate cuts, the various health metrics of our residential business are moving in the right direction. 1Q24 Residential Sales Months’ Inventory Strong lineup of projects in the premium segment P33.3B +20% 21 The highest quarterly From 24 months +34% Premium Segme
Slide 6: Premium residential segment continues to drive property demand in 2024
The premium residential segment continues 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 PERSONS WITH AT LEAST USD250K since the end of the (In Php B) strong high-income pandemic +88%
Slide 7: Young population, urbanization, and remittances will 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 8: We started the reinvention of our shopping malls
3. We started the reinvention of our shopping malls GLORIETTA FLAGSHIP MALLS REINVENTION P13B CAPEX 22% of GLA 39% of Revenues Building GLA | Completion • Greenbelt* – 57k GLA | 4Q 2025 • Trinoma – 79K GLA | 4Q 2025 • AC Cebu – 99K GLA | 4Q 2025 • Glorietta – 109K GLA | 2Q 2026 GREENBELT TRINOMA • O
Slide 9: Positioned to grow our hospitality portfolio
4. We are positioned to grow our hospitality portfolio – we are strengthening our capabilities and repositioning our assets. HOTELS & RESORTS REINVENTION P7.1B CAPEX • 4 El Nido Resorts • 10 Hotels • We will bolster our hospitality business by strengthening our Seda brand, optimizing asset returns,
Slide 10: Hospitality business aims to capture growing leisure tourism market
Our hospitality business aims to capture the growing leisure tourism market • We anticipate strong leisure market growth – including foreign arrivals that are staying longer with higher lodging and F&B spend • NAIA rehabilitation will be a boost, increasing annual passenger capacity from 32M to 60M
Slide 11: Returning capital through dividends and share buybacks
5. We are returning capital to our shareholders through dividends and share buybacks. 1H 2024 Dividends P0.2050/share P3.1B P6.2B 25% of FY23 NIAT Returned to Shareholders Share Buyback P3.1B P28.0B Approved Buyback Program P12.6B* Cumulative buybacks to date Ayala Land, Inc. *As of 15 May 2024 11
Slide 12: Contents
Contents • Key Messages from the CEO • 1Q 2024 Results • Company Background Ayala Land, Inc. 12
Slide 13: Revenues of P41.0B +33%; Net Income of P6.3B +39%
Revenues of P41.0B +33%; Net Income of P6.3B +39% INCOME STATEMENT 1Q 2024 1Q 2023 Change % (in Php millions) Total Revenues 41,006 30,907 10,099 33% GAE RATIO Real Estate 40,117 30,122 9,996 33% 5.5% Interest and Other Income 889 786 103 13% 6.3% in 1Q 2023 Equity in Net Earnings of Associates/JVs
Slide 14: Revenue growth driven by residential and commercial lot bookings
Revenue growth was driven by robust residential and commercial lot bookings and additional external construction projects supported by stable leasing operations. REVENUE BREAKDOWN 1Q 2024 1Q 2023 Change % (in Php millions) Property Development 25,042 17,075 7,968 47% Residential 21,410 14,192 7,218
Slide 15: Residential Sales: 1Q24 P33.3B +20%
Residential Sales: 1Q24 P33.3B +20% RESERVATION SALES (in Php Billions) LAUNCHES 33.3 P13.7B (4 Projects) 30.6 28.0 27.6 27.7 27.6 28.0 85% Premium; 15% Core 24.1 25.2 100% Horizontal ALP Alveo Avida Amaia Bellavita 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 AVERAGE MONT
Slide 16: 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 4,491 rooms Branded: 660 El Nido: 187 34 Malls, 63 Amenity Retail 65 BPOs, 6 HQs Seda: 3,261 Lio B&Bs: 50 Circuit: 255 Sicogon B&Bs: 78 LEASE OUT RATE LEASE OUT RATE OCCUPANCY 65% (-4 pt) 56% (
Slide 17: Ancillary formats strengthen the leasing portfolio
Ancillary formats strengthen the leasing portfolio 314K sqm GLA 2,032 Beds 1,411 Seats ALogis Calamba – 93,794 Amorsolo 196 rooms, 728 beds 6,473 sqm of GLA Laguna Technopark - 102,458 BGC 5th Avenue 375 rooms, 1,244 beds Cavite Technopark – 17,811 +4,675 Sacred Heart 32 rooms, 60 beds Makati Stock
Slide 18: Capex spend of P18.8B
Capex spend of P18.8B CAPEX BREAKDOWN 1Q 2024 (in Php billions) Actual Others Residential 9.3 1% Residential Malls 0.8 49% Offices 1.1 Hotels and Resorts 0.2 Estate Development Land Acquisition 1.6 30% Estate Development 5.6 Others 0.2 Total 18.8 P18.8B HISTORICAL CAPEX 109 Land 86 Acquisition 72 64
Slide 19: 2024 Budget: P100B Capex; P115B in Launches
2024 Budget: P100B CAPEX; P115B in Launches P115B PROPERTY LAUNCHES DEVELOPMENT Residential 34% P100B Residential 80% PREMIUM 20% Core 44% Metro Manila Estate Development P15B Comm’l and Industrial 38% South Luzon --- 7% Central Luzon 24% 52% Horizontal 11% VisMin 48% Vertical 2024E CAPEX P100B COMM
Slide 20: Well-managed debt with 91% contracted long-term, 75% fixed
Well-managed debt with 91% contracted long-term, 75% fixed; average borrowing cost of 5.2%, maturity of 4.1 years Total Borrowings: Php265.0B: Short-term Php23.6B (9%), Long-term Php241.4B (91%), Average Maturity 4.1 years Long-term Debt Maturity (in Php Billions) Short-term Debt Maturity (in Php Bi
Slide 21: Strong balance sheet with net gearing ratio of 0.74:1
A strong balance sheet with a net gearing ratio of 0.74:1 Balance Sheet March December (in Php Millions) 2024 2023 Cash & Cash Equivalents 20,759 17,820 Total Borrowings 265,004 258,254 Stockholders’ Equity 328,480 319,929 Current Ratio 1.79 1.76 Debt-to-Equity Ratio 0.81 0.81 Net Debt-to-Equity Rat
Slide 22: Contents
Contents • Key Messages from the CEO • 1Q 2024 Results • Company Background Ayala Land, Inc. 22
Slide 23: 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 24: Ayala Land is the 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 • 7th largest PLC in the Philippines; 5th largest property developer in ASEAN by market cap Revenues and Total Assets (in Php Billions) Revenues To
Slide 25: 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 25
Slide 26: 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 27: Track record of expansion and growth 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 28: 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 29: A diversified portfolio will drive long-term shareholder value
A diversified portfolio will drive long-term shareholder value • 34 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 6 Industrial • 12 in VisMin BALANCED AND COMPLEMENTARY BUSINESSES PRO
Slide 30: Residential products serve demand across the socio-economic pyramid
We have residential products to serve the demand across the whole spectrum of the socio-economic pyramid Population Breakdown by Wealth Band* 2020** 2030E** 110M POPULATION 124M Segment Size (in sqm) PHP USD WEALTHY, Luxury Lot: 450-1,400 25-77M 442K-1.5M MASS AFFLUENT Condo: 62-596 19-614M 554K-4.5
Slide 31: 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 32: Land bank strategically 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 VisMin 1.
Slide 33: Asset-right strategy: utilize average 800 ha annually
Asset-right strategy: Utilize an average of 800 ha annually from our existing land bank END 2023 LAND BANK: 11,240 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 Estates 17% 61% 72% Aya
Slide 34: ESG practices are 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 86% of Scopes • Supported 1180 Social En
Slide 35: Sustainability practices to support the Net Zero goal 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 36: Sustainability practices to support the Net Zero goal 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 37: Investor Relations
Investor Relations Scan the QR code to join Website the IR mailing list ir.ayalaland.com.ph Email investorrelations@ayalaland.com.ph