Overview

Ayala Land is not only one of the leading real property developers in the country. It's a driving force that promotes
economic growth and uplifts the quality of life for Filipinos. Decades of experience with excellence, Ayala Land has
proven to be exemplary in its creation of communities, transformation of spaces, and definition of standards in urban
development.

Ayala Land is not just an investment but a commitment to an inspiring leader who helps paint a sustainable and
prosperous future. Each project, dedicated to innovative, sustainable, and evolving needs of Filipinos, makes Ayala Land
the first name in creating inspiring areas that help people achieve development and enrich their lives. Partner with Ayala
Land today and secure a property that would help in building better, greener, and more inclusive communities for
generationsSALES to come.

PERFORMANCE

• Revenue declined sharply from ₱168.7 billion in 2019 to ₱96.27 billion in 2020, marking a substantial 42.93% decrease.
• Revenue showed signs of recovery, increasing from ₱96.27 billion in 2020 to ₱106.14 billion in 2021, a modest 10.24%
growth.
• Revenue surged from ₱106.14 billion in 2021 to ₱126.56 billion in 2022, reflecting a robust 19.21% increase.
• Revenue maintained its upward trajectory, climbing from ₱126.56 billion in 2022 to ₱148.86 billion in 2023, marking a
17.61% increase.

STRENGHTS, WEAKNESSES, OPPORTUNITIES, THREATS

Strength
1. Ayala Land is the largest property developer in the Philippines
- Ayala Land stated that they had a solid track record in developing large-scale, integrated, mixed-use sustainable
estates and transforming them into thriving economic centers. With more than 11,000 hectares of landbank, and With a
footprint spanning 52 estates nationwide. It is also ranked high in the Philippine Stock Exchange(PSE) at 4th place
compared to megaworld It current landbank stands at 4,500 hectares and ranks 18th in the PSE.
2. Diversified Portfolio
- Ayala Land has a diverse real estate portfolio composed of developing residential, office, commercial and
industrial properties for sale, as well as properties for lease such as shopping centers, offices, hotels, resorts,
warehouses, co-living and co-working spaces.
The diversification cemented its position as a key player in the real estate industry, providing more than just
residences but also spaces that drive economic and social activity. ALI has a current income of 166.2 billion of
consolidated revenue in 2019. Ayala has 5 distinct residential brands. Ayala Land Premier offers luxurious high
 end developments,Alveo caters to urban high achievers and cosmopolitans,Avida services the middle class,while
Amaia and BellaVita services the broad C market for a wide range of offerings. And for Megaworld was founded
in 1989 and now has a net income of P44.9 billion in consolidated revenues. Some of its distinguished township
projects include its flagship Eastwood City,Uptown Bonifacio,Forbes Town Center,Newport City,Mckinley Hill
and the Iloilo Business Park.
3. As the leader of pioneering the concept of sustainable development in the Philippines
- Ayala Land is committed to being a leading sustainable developer by integrating green building practices,
energy efficiency, and eco-friendly lifestyles across its real estate developments. For decades, the company has
focused on environmental preservation and sustainable growth, aligning its policies with the United Nations
Sustainable Development Goals. By using eco-friendly construction materials, passive green design, solar energy,
and rainwater harvesting, Ayala Land reduces the carbon footprint of its buildings and enhances overall quality of
life. To further its efforts, Ayala Land has established a dedicated committee to improve sustainability practices
and support environmental initiatives in the country.
4. Ayala Land is engaged in construction, property management and other property-related investment.
- One of this evidence building on the success of the Makati Central Business District (Makati CBD), Ayala
Alabang, Cebu Park District, Bonifacio Global City (BGC) and Nuvali, Ayala Land adheres to globally
recognized sustainability standards and practices.
5. Community engagement
- Ayala Land expanded the reach of Alagang AyalaLand program, which now supports close to 1,600 social
enterprises (SEs) across Ayala Malls nationwide. Many are integrated into our supply chain, providing goods and
services to Makati Development Corporation and Ayala Property Management Corporation through horticultural
supplies to estates and transport services to office employees. They provided other platforms for SEs to showcase
their products, such as the Sinag Sari-Sari Store, a partnership between Ayala Land, BPI Foundation, and Bayan
Academy in Trinoma and Glorietta. It is essential to provide platforms to showcase their products and increase
their visibility, especially in malls where foot traffic is high. Through these partnerships, Ayala Land bring more
resources and expertise to the program, which can benefit participating entrepreneurs and contribute to the
development of local communities.
6. Sustainable communities and estate
- Ayala Land has expanded its presence by launching two new estates: Areza in Lipa City, Batangas, and
Crossroads in Plaridel, Bulacan. Areza, covering 92 hectares, is Ayala Land's first mixed-use, master-planned
estate in Batangas. It will feature a combination of residential and commercial properties, along with amenities
such as a food terminal, public market, and retail areas. The first development on this estate, the new Lipa City
Hall, began construction in July 2022. Crossroads, spanning 83 hectares, is another mixed-use, master-planned
estate located in Bulacan's emerging business zone. With the addition of Areza and Crossroads, Ayala Land now
has a total of 49 estates, which serve as platforms for property development and commercial leasing, contributing
to the economic growth of local communities and benefiting Filipino families for generations. The launch of
Areza in Lipa City and Crossroads in Plaridel brings significant benefits to the local communities. These new
estates stimulate economic growth by creating job opportunities during construction and operation, while
attracting businesses that foster further employment. The integration of residential and commercial spaces
improves infrastructure, offering essential services like food terminals, public markets, and retail areas, which
enhance convenience and quality of life. Additionally, these developments incorporate eco-friendly practices,
promoting sustainability and creating cleaner, greener living spaces for residents. By providing platforms for local
businesses, the estates also support entrepreneurship and help drive the growth of the local economy. Overall,
Areza and Crossroads contribute to the long-term well-being of the community, offering modern, sustainable
living environments for future generations.
WEAKNESSES

1. Tenant Rent Collection Challenges

-Difficulties in collecting rent from tenants, particularly during economic disruptions such as the COVID-19
pandemic, can affect cash flow and overall financial performance. During the COVID-19 pandemic, Ayala Land,
like many property developers, faced challenges in collecting rent from tenants across its retail and commercial
properties. Many tenants, particularly those in the retail sector, experienced significant financial strain due to
restrictions on business operations and reduced consumer activity. This led to delays or defaults in rent payments.
For instance, various reports highlighted that retail tenants in malls faced difficulties in paying rents as their
revenues dropped drastically during lockdowns, prompting landlords like Ayala Land to negotiate or defer
payments for struggling tenants. These measures, while supportive, impacted cash flow and financial
performance.
2. Slow growth in China and job creation in United States
-Ayala Land Inc.'s reliance on the economic conditions in international markets such as China and the U.S. can
expose the company to external vulnerabilities. For instance, low economic growth in China reduces demand for
premium real estate investments from Chinese buyers and developers, which limits Ayala Land's ability to expand
or attract investors from this significant market. Similarly, job creation and economic recovery in the U.S. could
shift investment interest and capital away from emerging markets like the Philippines, leading to increased
competition for funds that could otherwise benefit Ayala Land’s projects. These external factors, coupled with the
company's dependence on sustained growth in global markets, make this dynamic a potential weakness.
3. Cost structure
-Ayala Land Inc.'s cost structure is considered a weakness due to its significant reliance on debt and high capital
expenditures (capex), which strain financial flexibility. The company maintains considerable debt to finance its
large-scale development projects and refinancing obligations, leaving it vulnerable to rising interest rates and
economic downturns. Despite plans to lower group-wide capex by 10% in 2024, Ayala Land continues to allocate
substantial resources to redevelopment projects, which can increase operational costs and limit available funds for
other strategic initiatives. Furthermore, while the company generates strong revenues, its valuation metrics, such
as a high enterprise value relative to sales, suggest inefficiencies that could affect profitability and investor
appeal.

OPPORTUNITIES

1. Increasing Population and Urbanization

-As the population in the Philippines continues to grow, especially in urban areas, there is a greater demand for
residential properties and infrastructure. Ayala Land can capitalize on this by expanding its housing projects and
urban developments to accommodate the growing number of people. With more people moving to cities for work,
education, and better living conditions, Ayala Land has the opportunity to develop new residential communities
and commercial spaces that cater to this expanding population.
2. Growth of Sustainable Developments
-More people are looking for eco-friendly homes and buildings. Ayala Land can take advantage of this trend by
focusing more on sustainable and green developments, as this is becoming more important for many buyers.
3. Increased Demand for Different Price Ranges
 -Ayala Land offers a variety of real estate options at different price levels, which attracts more customers. There
is an opportunity to expand these offerings even further to meet the growing demand for homes and offices that fit
different budgets and lifestyles.

4. Use of Technology in Real Estate

-As technology becomes more important in every industry, Ayala Land can improve how it uses digital tools. For
example, they could create better online platforms for customers to view properties, learn more about their
options, and even make purchases or bookings online.
THREATS

1. Economic Disruptions Affecting Rent Collection

-Ayala Land faces threats during economic downturns or crises like the COVID-19 pandemic. Reduced consumer
spending and temporary business closures can lead to lower rental income as tenants struggle to meet payment
obligations. This can disrupt cash flow and hurt the company’s financial performance.

Solution:
-Ayala Land can create flexible rent policies during crises to support tenants while maintaining some revenue.
Diversifying tenant profiles by attracting businesses from stable sectors like healthcare, technology, and essential
services can also help ensure consistent rent collection during economic disruptions.
2. Vulnerability to International Market Conditions
-While Ayala Land has a strong local presence, its exposure to international markets like China and the U.S.
makes it vulnerable to global economic trends. Slow growth in China may reduce demand for premium real estate
investments, while economic recovery in the U.S. could shift capital away from emerging markets like the
Philippines.
Solution:
-Ayala Land can focus on strengthening its local market by targeting underserved areas in the Philippines. It can
also explore opportunities in Southeast Asia, where demand for real estate is growing, to reduce risks from
volatile global markets.
3. Rising Interest Rates and High Debt Levels
-Ayala Land’s reliance on debt for funding large-scale projects is a threat, especially in times of rising interest
rates. High borrowing costs can increase financial strain, reduce profitability, and limit the company's ability to
pursue new projects.
Solution:
-Ayala Land can work on optimizing its cost structure by prioritizing projects with the highest return on
investment. It can also explore alternative funding options, such as joint ventures with other companies or
partnerships with private investors, to reduce reliance on debt.

CHALLENGES
FACED OFfaced
Ayala Land AYALA
intense competition in the Philippine real estate market, characterized by a saturated landscape filled
LAND
with numerous established and emerging developers. This competitive environment necessitated that Ayala Land not only
differentiate itself through innovative designs and superior quality but also adapt to changing consumer preferences for
sustainability and modern amenities. The influx of choices for consumers further intensified the pressure on Ayala Land
to enhance its customer service and engagement strategies to retain market share and loyalty amidst fierce rivalry.
 In response to these challenges, Ayala Land implemented a robust action plan focused on innovation, customer-
centricity, and sustainability. The company prioritized unique, eco-friendly developments and expanded its diverse
property portfolio to cater to a wider audience. By fostering strategic partnerships for technological advancements and
enhancing customer service through personalized experiences, Ayala Land aimed to strengthen its market position.
Additionally, the company's commitment to sustainability not only addressed environmental concerns but also attracted
environmentally conscious consumers, solidifying its reputation as an industry leader in responsible real estate
development.
BIGGEST CHALLENGE FACED:
During the COVID-19 pandemic, Ayala Land experienced a significant decline in revenue and net income, with
figures dropping by 43% and 74%, respectively, due to the impact of community quarantines on mall, hotel, resort, and
residential operations. In response, the company focused on maintaining financial sustainability by closely managing
liquidity. They conducted regular cashflow reviews, revised their capital expenditure budget from PHP110 billion to
PHP70 billion, and kept spending well within the revised target at PHP63.7 billion. Additionally, they implemented zero-
based budgeting to control costs, ensuring sufficient cash flow to cover both capex and debt obligations.
Furthermore, Ayala Land successfully raised PHP40.85 billion in term refinancing with a blended interest rate of
3.85% and a 7-year average tenor, significantly reducing its overall cost of debt by 46 basis points. Ayala Land were the
first to tap the debt capital markets during the lockdown, issuing a PHP10 billion 2-year bond in June 2020 with a 3%
coupon rate. Later, in September 2020, they secured a 5-year tenor with a PHP6.25 billion issuance. These fundraising
activities demonstrated strong confidence from creditors and investors, despite the challenging environment for the real
estate sector. Additionally, Ayala Land maintained PHP84 billion in short-term credit facilities, with PHP75 billion
unutilized but preserved without cancellation or commitment fees, further underscoring their financial strength and
liquidity management.
Another biggest challenge that Ayala Land faced is sustainability. As the real estate market faces the difficulties of
climate change and resource depletion, sustainability has become an increasingly important factor. The need to cut carbon
emissions, save energy, and protect natural resources has never been greater. Recognizing the importance of
sustainability, Ayala Land has made it a guiding concept in all of its initiatives. Ayala Land remains committed to
becoming a leading sustainable developer by adopting green building principles, promoting energy efficiency, and
encouraging eco-friendly lifestyles across its diverse portfolio of real estate developments.
For decades, Ayala Land has been dedicated to preserving the environment and forwarding sustainable development in
the Philippines. "As we manage our businesses, our growth and expansion are supported by our constantly evolving
policies and practices that respond to economic, environmental, and social issues that are of interest to our stakeholders—
aligned with and supportive of the United Nations Sustainable Development Goals. We continue to monitor concerns such
as climate change, resource efficiency, local economic development, and corporate governance to guide and improve our
sustainable development programs in the Philippines." -Ayala Land-
Ayala Land faced intense competition in the Philippine real estate market, characterized by a saturated landscape filled
with numerous established and emerging developers. This competitive environment necessitated that Ayala Land not only
differentiate itself through innovative designs and superior quality but also adapt to changing consumer preferences for
sustainability and modern amenities. The influx of choices for consumers further intensified the pressure on Ayala Land
to enhance its customer service and engagement strategies to retain market share and loyalty amidst fierce rivalry.
In response to these challenges, Ayala Land implemented a robust action plan focused on innovation, customer-
centricity, and sustainability. The company prioritized unique, eco-friendly developments and expanded its diverse
property portfolio to cater to a wider audience. By fostering strategic partnerships for technological advancements and
enhancing customer service through personalized experiences, Ayala Land aimed to strengthen its market position.
Additionally, the company's commitment to sustainability not only addressed environmental concerns but also attracted
environmentally conscious consumers, solidifying its reputation as an industry leader in responsible real estate
development.
FINANCIAL RATIOS

 The current ratio measures a company’s ability to meet its short-term liabilities with its short-term assets.Ayala
Land’s current ratio of 1.76 means that for every peso of short-term liabilities, Ayala Land has 1.76 pesos in their

current assets to pay them.

- This is not only significantly higher than the minimum standard of 1.0 but also higher than Megaworld’s
current ratio of 1.36. This indicates that Ayala Land is in a stronger position to manage its financial
responsibilities effectively, offering greater financial stability and reduced financial risks.
 Earnings Per Share (EPS) is a key financial metric often referred to as a "report card" for a company’s
profitability. It represents how much profit is attributable to each individual share of the company's stock.
Essentially, it gives investors an idea of how much money they could theoretically earn for every share they own.
- For instance, Ayala Land's EPS is ₱0.88, meaning that for every share of Ayala Land stock, a
shareholder earns ₱0.88 from the company's profits. This figure reflects the company’s ability to generate
earnings and distribute value to its shareholders.

 In comparison, if Ayala Land's EPS is higher than that of Megaworld, it implies that Ayala Land shareholders
stand to gain more profit per share than Megaworld shareholders. A higher EPS is generally a positive indicator as
it shows that the company is profitable and efficiently converting its earnings into shareholder value.
- Thus, investing in Ayala Land could be more beneficial if your goal is to maximize earnings per share.
However, it’s important to remember that EPS is just one of many metrics to evaluate a company. Potential
investors should also consider other factors such as growth potential, market trends, dividend policies, and the
overall financial health of the company before making investment decisions.
 ROE (Return on Equity) measures how well a company uses the money invested by shareholders to make profits.
Ayala Land’s 9.30% ROE is higher than Megaworld’s 7.61%, meaning Ayala Land is better at turning
shareholder investments into earnings. A higher ROE reflects strong management performance, meaning Ayala
Land is more efficient at generating profits, which offers better value for investors.
- Investing in Ayala Land gives you the opportunity to be part of a company with proven financial strength,
strong management, and consistent profitability. With its solid ROE, Ayala Land is positioned for sustainable
growth, offering investors not just returns, but stability and long-term value. By choosing Ayala Land, you're
investing in a leader in the real estate industry with a track record of innovation, resilience, and a bright future
ahead.
 Ayala Land’s P/E ratio of 16.22 shows that investors are willing to pay a higher price for its stock because they
believe the company has strong growth potential. A higher P/E ratio means investors expect the company to keep
growing and making good profits in the future. In Ayala Land's case, this suggests that investors trust the
company to expand its real estate projects, enter new markets, and continue to perform well. Compared to
Megaworld, which has a lower P/E ratio of 3.66, Ayala Land is seen as a safer, more promising investment
because people are willing to pay more for its shares, expecting it to be more profitable in the long run. This
makes Ayala Land an appealing option for investors who are looking for steady growth and long-term returns.

BALANCE SHEETS AND ITS RATIONALE

ASSETS
• Ayala Land's assets increased in 2019, driven by growth in property development (PHP 158.9 billion in new projects)
and commercial leasing (PHP 15.1 billion in new malls, offices, and hotels). Residential brands delivered 11,476 units,
representing a 28% growth rate over the previous five years. Positive macroeconomic conditions fueled the company's
expansion as it concentrated on developing sustainable, mixed-use communities around the Philippines.
• The expansion and launch of AREIT inc., the first real estate investment trust (REIT) on the Philippine stock exchange,
increased Ayala Land's asset value. Ayala Land Inc made history in 2020 when it listed AREIT Inc, the first real estate
investment trust to debut on the Philippine Stock Exchange, despite the increased uncertainty surrounding the COVID-19
outbreak. By confronting the market, AREIT cleared the way for the growth of a new asset class that has actually given
dividends to investors who capitalized on the income prospects presented by these high dividend-paying corporations.
• Ayala Land's assets goes up in 2021 as a result of strategic acquisitions and expansions within its real estate investment
trust (AREIT). It made a certain buy. The 30th, a commercial land within the Laguna Technopark complex, and
completed the share-for-property swap to strengthen its portfolio with prime-value properties like as the Office Towers
and Mall within the Vertis North property development, BPI Philam Life Offices, and various BPO buildings. The deals
increased the gross leasable area to 549,000 square meters and assets under management to ₱53 billion.
• Significant investments and strategic acquisitions drove Ayala Land's asset growth in 2022. The company invested ₱90
billion in capital expenditures, began ₱100 billion in residential projects, and completed a property-for-share swap with
Ayala Corporation and Mermac, Inc., adding commercial assets and land to its portfolio. These initiatives, together with a
rebound in property development and leasing, strengthened the company's asset base and positioned it for future growth.
• Ayala Land's assets increase in 2023, owing to solid performances in the residential, commercial, and hospitality sectors.
Residential sales were high, shopping malls expanded by 31%, and the hospitality industry surged by 42%. Revenues
from leasing and property development increased by 25% and 14%, respectively, thanks to strong consumer activity and
key project completions. As the largest property developer in the Philippines, Ayala Land's strategy of sustainable, mixed-
use estates has enhanced its asset base.

LIABILITIES

• Between 2019 and 2020 the liability of Ayala Land goes down by 2.1℅. Ayala Land's liability decreased by 2.1%
between 2019 and 2020 due to effective cost containment initiatives and a reduction in corporate expenses. The company
reported a 9% decline in general and administrative expenses, which contributed to improved financial efficiency.
Additionally, the management focused on maintaining a strong balance sheet by carefully managing debt levels.
• In 2021the liability of Ayala Land increases by 2.9%. Ayala Land's liability increased by 2.9% in 2021 because of the
higher capital expenditures and ongoing investments in residential and commercial projects. The company focused on
expanding its property development and commercial leasing segments, despite facing challenges in residential bookings.
• In 2022 it increases by 2.3℅. Ayala Land's liabilities increased by 2.3% in 2022 due to the company's continued
investments in property development and capital expenditures. This increase in liabilities aligns with their goal of
expanding their portfolio and enhancing revenue streams through commercial leasing and services.
• Lastly in 2023 their liability increased and reaches to 7.7%. Ayala Land's liabilities increased by 7.7% in 2023 primarily
due to significant investments in property development and expansion projects. The company reported a robust demand
for real estate, leading to a 14% rise in property development revenue and a 25% increase in overall leasing and
hospitality revenue. This growth necessitated additional borrowing to finance new developments, which contributed to the
rise in total liabilities.

EQUITY

• Ayala Land's equity increased due to strong performance in property development and commercial leasing. The
company experienced a net income growth of 12% in the first quarter, driven by sustained demand for residential
properties and a surge in commercial leasing revenues. Overall, the positive market conditions and effective management
strategies contributed to the growth in equity.
• The equity rose despite the COVID-19 pandemic's impact, primarily due to a robust initial recovery phase in the real
estate sector. Although the pandemic led to a significant drop in net income (down 73.7% year-on-year in the second
quarter), Ayala Land managed to stabilize its operations and maintain some revenue streams, particularly in residential
and office leasing segments, which cushioned the impact on equity.
• The equity continued to grow as Ayala Land began to recover from the pandemic's effects. The company reported a 40%
year-on-year increase in net income to PHP 12.2 billion, supported by a rebound in property sales and commercial leasing
revenues. The easing of restrictions allowed for increased construction activity and sales, further enhancing the equity
base.
• The substantial rise in equity was attributed to a strong recovery in net income, which reached PHP 22.5 billion,
reflecting a significant 84% increase from the previous year. This growth was driven by robust demand in both residential
and commercial segments, alongside successful project launches and increased sales reservations, which bolstered overall
revenues.
• In 2023, Ayala Land's equity continued to rise due to projected net income growth of approximately 41% to PHP 25
billion, driven by strong performance across all business segments. The company benefited from increased contributions
from property development and commercial leasing, as well as successful capital management strategies, including share
buybacks and strategic investments.