Ayala Land Inc. · PSE:ALI
Ayala Land — Q1 2016 Earnings Presentation
23 slides from Ayala Land's earnings presentation, May 4, 2016
Slide 1: 1Q 2016 Analysts' Briefing
1Q 2016 | Analysts’ Briefing 04 May 2016
Slide 2: Outline
Outline 1Q 2016 Results • Financial Statements • Margins • Capex • Operating Statistics 2
Slide 3: Key Messages
Key Messages 1. Net income registered at P4.7b, up 14% 2. Total revenues reached P27.0 billion, up 8% driven by the steady performance of the core real estate businesses which grew 8% 3. Total capex spent reached P23.4b 4. Launched residential, office for sale and leasing projects worth P38.1 billio
Slide 4: Net income of P4.7b, up 14%
Net income of P4.7b, up 14% • Real Estate Income Statement 1Q 2016 1Q 2015 Change % (in Php millions) Revenues higher Total Revenues* 26,972 25,061 1,912 8% by 8% Real Estate** 26,663 24,760 1,903 8% Interest & Other Income 309 301 9 3% Equity in Net Earnings of • GAE ratio Associates and JVs (46) (
Slide 5: Steady performance of core businesses
Steady performance of core businesses Revenue Breakdown 1Q 2016 1Q 2015 Change % (in P millions) Property Development 17,399 17,002 397 2% Residential 15,925 14,025 1,900 14% New bookings and project completion Office for Sale 1,306 985 321 33% Contribution of ALVEO Financial Tower Comm’l/Ind’l lots
Slide 6: Sustained margins in property development, improved margins in commercial leasing
Sustained margins in property development, improved margins in commercial leasing Margin Performance 1Q 2016 1Q 2015 Property Development (Gross profit) Residential Horizontal 43% 44% Lower margin on newly launched projects Vertical 34% 32% Sale of higher margin projects Office for Sale 39% 40% Lowe
Slide 7: Continued diversification into new growth centers
Continued diversification into new growth centers NIAT contribution per business center 36% 34% ] ] 32% Other Vismin Other Luzon Other MM FTI 24% ] 27% ] ] Manila Vertis Cebu Alabang BGC 35% ] Nuvali Makati 2011 2012 2013 2014 2015 1Q 2016 7
Slide 8: Continued build up of recurring income business
Continued build up of recurring income business NIAT contribution per core business segment* 34% 27% ] 29% ] Hotels & Resorts Office Malls 36% ] Comm'l / Ind'l Lots Bellavita 38% ] ] 40% Amaia Avida ] Alveo ALP 2011 2012 2013 2014 2015 1Q 2016 * Excludes NIAT from services. Target is to increase the
Slide 9: Solid balance sheet to support growth
Solid balance sheet to support growth Balance Sheet March December Change % (in P millions) 2016 2015 Cash & Cash Equivalents* 17,090 19,252 (2,162) -11% Total Borrowings 148,343 130,996 17,346 13% Stockholders’ Equity 151,144 149,825 1,319 1% Current Ratio 1.07 1.14 - - Debt-to-Equity Ratio ** 0.98
Slide 10: Sustained capital efficiency via stretched maturities, lower cost of debt and managed debt mix
Sustained capital efficiency via stretched maturities, lower cost of debt and managed debt mix As of March 31, 2016 Total Borrowings: Php148.3B, Short-term Php25.2B 9.0% Short-term Debt Maturity 35 8.0% (in Php Billions) 30 7.0% 7.9% 25.3 Long-term Debt Maturity 7.3% (in Php Billions) 25 6.0% 6.2% B
Slide 11: Total capex spent reached P23.4b (27% of FY budget)
Total capex spent reached P23.4b (27% of FY budget) 1Q 2016 Capex Spend 1Q 2016 Capex Breakdown (In Php billions) Land Acquisiti Resident on ial FY 2016 1Q 2016 13% 29% Budget Actual Land Acquisition 15.4 2.9 Residential 34.1 6.8 Others* Malls Malls 13.6 2.8 30% 12% Hotels Offices 7.2 1.9 3% Hotels
Slide 12: Residential: Sales take-up 6% higher yoy
Residential: Sales take-up 6% higher yoy • Sales take-up of P24.7b Sales Take-Up (In Php Bn) (average of P8.2b in monthly sales) 31.2 30.5 29.0 27.3 24.7 23.4 22.4 21.3 22.0 • Overseas Filipino Sales : ALP P6.2b (25% of total sales) Alveo Avida Amaia • Booked sales of P15b Bellavita 1Q 2014 2Q 2014
Slide 13: Sustained level of unbooked revenues
Sustained level of unbooked revenues • Up by 2% vs P127b in Q1 (in Php Billions) 2015 Unbooked Revenues 129 129 122 99 65 48 19 2010 2011 2012 2013 2014 2015 1Q 2016 13
Slide 14: Key Launches: Residential
Key Launches: Residential Riomonte Phase 4 (Feb 2016) Montala Phase 2 (Mar 2016) One Union Place Tower 3 (Mar 2016) Nuvali Alviera, Pampanga Arca South 190 units, P1.9b 195 units, P751m 522 units, P1.7b 60% cum. take-up 25% cum. take-up 12% cum. take-up 14
Slide 15: Key Launches: Office for Sale
Key Launches: Office for Sale Park Triangle Corporate Plaza South Tower (Mar 2016) BGC 220units, P6.3b 23% cum. take-up 15
Slide 16: Key Launches: Ayala Center Redevelopment
Key Launches: Ayala Center Redevelopment Ayala Center InterCon Block Redevelopment Seda (Jan 2016) Office Hotel Towers - Retail Podium (54K GLA) - Office (85K GLA) Condo - Hotels (600 Rooms) for lease - Condo for Lease (300 Rooms) - Transport Terminal Investment Cost: P19bn 16
Slide 17: Malls: Total GLA of 1.45m sqm
Malls: Total GLA of 1.45m sqm Newly opened malls • Average Occupancy Rate: 94% • Average Mall Lease Rate: P1,155/sqm/month • Same Mall Rental Growth: 5% Ayala Malls Legazpi, Albay 15K GLA Solenad 3, Nuvali UP Town Center, QC (Ph 1B) 40k GLA 23k GLA 17
Slide 18: Malls Update
Malls Update Major Openings for 2016 Under Construction: 892k GLA Completion Mall GLA (in k sqm) 2016 (177k) Lio El Nido 3 Vertis North QC 47 Legaspi 15 Southpark Alabang 47 Riverside 1 UPTC Ph2 33 BHS Central (ear lot) 3 The 30th 28 2017 (172k) Feliz 80 Cloverleaf 39 Arvo Marikina* 20 Circuit Mall
Slide 19: Offices: Total GLA of 742k sqm
Offices: Total GLA of 742k sqm Newly opened offices • Average Occupancy Rate: 83.1%* • Average Lease Rate: P697/sqm/month • Leased-out rate: 95% Bonifacio Stopover 17K GLA * Includes new office spaces leased for fit-out. Occupancy (stable) ~ 95% Centrio 9K GLA 19
Slide 20: Offices Update
Offices Update Major Openings for 2016 Under Construction: 789k GLA Completion Office GLA (in k sqm) 2016 (162k) The 30th 47 Vertis 1 41 PSE at BGC 29 ACC Cebu BPO 29 UP Technohub Bldg P 10 UPIS 6 ACC Cebu BPO 29k GLA 2017 (193k) Vertis 2 42 Circuit 1 45 Arca South BPO 1 33 Circuit 2 26 Tech Tower C
Slide 21: Hotels and Resorts: Total of 1,991 rooms in operation
Hotels and Resorts: Total of 1,991* rooms in operation Newly opened hotel 1Q 2016 Hotels* Resorts No. of rooms Branded: 961 El Nido Resorts: in operation Seda: 817 213 Revpar/night P3,892 P9,913 (up 1%) (up 9%) Average P5,341 P14,860 room rate (unchanged) (up 15%) Average 73% 67% occupancy (up 1%) (
Slide 22: Hotels and Resorts Update
Hotels and Resorts Update Openings for 2016 Under Construction: 3,721 Rooms Completion Hotel No. of Rooms 2016 (62) El Nido B&B 3* 20 El Nido B&B 2 42 2017 (765) Seda Vertis North 438 Seda Lio 153 Seda Bacolod 154 El Nido B&B 1* 20 2018 (1,075) Seda Circuit 255 El Nido B&B Seda Arca South 265 62 roo
Slide 23: In Summary
In Summary 1. Net income registered at P4.7b, up 14% 2. Total revenues reached P27.0 billion, up 8% driven by the steady performance of the core real estate businesses which grew 8% 3. Total capex spent reached P23.4b 4. Launched residential, office for sale and leasing projects worth P38.1 billion