2013

AYALA LAND 2013

AUGUST 25, 2014 KEVIN 0 COMMENTS
Ayala Land 2013 Annual Report Analysis
Ayala Land which Filipino does not know of them? Their name is as ubiquitious as SMs two-
lettered logo. While often compared as SM Primes malling rival, theres more to Ayala Land than
meets the eye. Throughout the metro, it is often cited as the benchmark in real estate development
with its presence felt through their integrated, masterplanned and sustainable mixed-used
communities.
It is under Ayala Corporation (AC) which is a publicly listed company 50% owned by Mermac Inc.,
10.5% by Mitsubishi Corporation, and the rest by public.
2013s growth highlights include
1. Launching of 81 projects worth Php 140 billion
2. Record sales of Php 91.9 billion
3. 136,000 sqm of shopping center and office GLA
4. Added 534 room keys to hotels and resorts segment
5. Launched two provincial growth centers in Quezon and Cebu
6. Launched four new estate projects Vertis, Altaraza, Circuit, South Park District Alabang
7. Launched healthcare business and opened 31 FamilyMart stores
8. Land banked 2,758 hectares of land
Due to strong borrowing, it is important to take note of capital efficiency. I would like to report that
ALI has performed outstandingly in managing its debt and has taken advantage of the leverage by
using the capital to fund projects that offers a better yield. It has lowered average cost of debt to
5.1% from 5.4% (2009 7.9%, 2010 7.5%, 2011 6.3%) while stretching average maturity to 6.3
years from 4.5 years in 2012.
Performance Highlights
(in millions of pesos)

2013

2012

2011

2010

2009

Revenue

81,523

59,932

47,667

Revenue Growth%

36%

Operating %

EBITA

24,114
16,616

15,122

Net Income

11,741

9,038

7,140

Net Income Growth %

30%

EPS

0.84

0.68

0.55

EPS Growth %

ROE

13%

13%

12%

ROA

5%

5%

6%

D/E

1.04

0.91

0.63

Current Ratio

1.45

1.41
1.64

Due to ALIs reputation and track record, it has managed to raise Php 23 billion in retail bonds at
rates of 4.625% for the seven-year, 5% for the ten-year, and 6% for the twenty-year tranche.
Residential
Revenue 2013

Revenue 2012

Revenue Growth%

Booked Sales

Value/Unit

Ayala Land Premier

Php 15.56b

41%

Php 24b

Php 22.97m

Alveo

Php 9.1b

Php 7.68b

18%

Avida

Php 12.5b

42%

Php 16.1b

Amaia

Php 2.43b

54%

Php 2.83b

BellaVita

Php 64m

1,611 units valued at Php 37b

Alveo X units valued at Php 30b
Revenues of Php52b
Revenue growth of 12%
Unbooked Revenues of Php 99b
Shopping Centers
Revenue of Php10.5b
10% Revenue Growth
Contributed to 13% of ALIs total 2013 revenues
Average Lease Rates up by 3%
Occupied gross leasable area (GLA) up by 7% YOY
Same store rentals up by 4%
EBITDA margins decreased to 62% from 64% due to continuing redevelopment of Ayala Center
Makati and Ayala Center Cebu
Average occupany rate is at a healthy 95%
In 2012, ALI partnered with Stores Specialists Inc. to form Varejo which serves as the holding
company for retail-related initiatives.
Ayala Land Offices
Revenue of Php 3.5b
Contributed to 4% of ALIs total 2013 revenues
5 Buildings; GLA of 124,000 sqm
Total available BPO GLA reached 490,450 sqm
Average BPO lease rates increased 8% to Php633/sqm
Ayala Land Hotels and Resorts
Average Room Rates up by 4% (hotels) and 22% (resorts)
Revenue of Php4.02b
Revenue growth of 64%
Buyout of Asian Conservation Group in TenKnots and assumed full ownership of El Nido Resorts
Growth driven by new hotels and resorts
Revenue per available room (REVPAR) for stable hotels was at Php3,592/night
REVPAR on resorts was at Php5,683/night
Construction
Makati Development Corporation (MDC)
Revenues of Php 4.5b
Contributed 6% to ALIs total revenues
Construction order book of Php 72.08b
Constructed 397 projects in 2013 (up 58% from 251 projects in 2012)
MDC Conqrete Inc. was also incorporated on August 2013 as a subsidiary to MDC primarily to
manufacture prefabricated concrete slabs, wall panels, and other construction materials.
Property Management
Ayala Property Management Corporation
Revenues of Php 1.9b (from Php1.0b in 2012)
Contributed to 2% of ALIs total 2013 revenues
162 managed properties spanning 54million sqm of space
68 new accounts
Driven by contribution of PhilEnergy and Direct Power
Revenues from real estate comprised the bulk of consolidated revenues with Php76.34b (+40%).
General and Administration Expenses declined further to 7.3% from 7.9% in 2012
Business Segments
2013 Revenues

2012 Revenues

Growth %

Property Development

Php 51.96b

Php 34.46b
51%

- Residential

Php 41.99b

Php 31.88b

32%

Commercial Leasing

Php 18b

Php 14.91b

21%

- Shopping Centers

Php 10.48b

10%

- Offices

Php 3.5b

Php 2.97b

18%

- Hotels and Resorts

Php 4.02b

Php 2.45b

64%

Services

Php 26.33b

Php20.38b

29%

Construction

Php 22.96b

19%

Property Management

Php 3.38b
196%

Residential Property Development

Sales Take-Up value of Php 91.93b
18% higher than 2012
Residential Gross Profit declined to 44% from 48% (horizontal projects) while vertical
developments improved from 35% to 37%

http://www.alphainvestments.ph/ayala-land-2013/