Ayalas to issue bonds to pump up war chest

Conglomerate Ayala Corp. announced plans to raise up to P15 billion from the sale of three, five and seven-year bonds to shore up cash.

Ayala told securities regulators that its board approved the issuance of P10 billion worth of Series C bonds due 2025, Series D bonds due 2027 and Series E bonds due 2029, with an oversubscription option of up to P5 billion.

The bonds constitute the second tranche of Ayala’s P30 shelf registered debt securities program.

Ayala said its proposed bond issue was assigned the highest rating of PRS Aaa by local credit watcher Philippine Rating Services Corp. Obligations rated as PRS Aaa are of the highest quality with minimal credit risk.

A PRS Aaa rating likewise reflects Ayala’s extremely strong capacity to meet its financial commitment.

The country’s oldest conglomerate is ramping up spending by a quarter to P285 billion this year to support the ongoing expansion of its real estate, energy and telecom businesses.

Property arm Ayala Land is preparing to roll out P100 billion worth of residential projects to take advantage of the strong demand.

SOURCE: Bilyonaryo

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Sys, Ayalas, Gokongweis, 7 business groups back return to office

Some seven business organizations and six companies welcomed the government’s push for people to return to the workplace which they said was a “significant step towards the country’s journey to post-pandemic normalcy.”

n a statement, the business groups said they were looking forward to seeing an increase in business activity with employees returning to the workplace.

“The path to recovery, we aver, begins with the presence in the business and commercial centers of our country’s workers,” they said.

These businesses include Ayala Land, SM Prime, Robinsons Land, Chamber of Real Estate and Builders Association Inc., Federation of Filipino Chinese Chambers of Commerce and Industry, Financial Executives Institute of the Philippines, Go Negosyo, Management Association of the Philippines, Megaworld, Philippine Constructors Association, Philippine Retailers Association, Philippine Chamber of Commerce and Industry and Resto PH.

They said the experience from Typhoon Odette last year showed that working from home is not meant for all businesses and should be temporary.

“Economic momentum has been established and we are now within easier reach of the prosperity we enjoyed in 2019. We encourage the public to now venture out of their homes while still maintaining safety protocols,” they said.

 SOURCE: Bilyonaryo

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Ayalas to triple AREIT assets to P64B after three years with Cebu buildings infusion

The country’s first real estate investment trust, AREIT Inc. will acquire P11.26 billion worth of office properties from sponsor Ayala Land Inc., a move that will further bulk up its portfolio of leasable assets.

AREIT disclosed to the Philippine Stock Exchange that it had entered into a deal with ALI for the issuance of 252.136 million of its primary common shares in exchange for six Cebu-based office buildings with a total gross leasable area of 124,299 square meters. This would mark the second property-for-share swap transaction between ALI and AREIT.

The office assets to be infused into AREIT are eBloc Towers 1 to 4 located at Cebu IT Park, ACC Tower and Tech Tower located at Ayala Center Cebu, primarily leased by major BPOs in the country. They have an overall occupancy rate of 97 percent.

The deal scales up AREIT’s assets under management to 673,000 sqm or P64 billion, a 213 percent jump since the company went public.

This growth exceeds AREIT’s target to double in size within two years from its initial public offering.

Since its IPO, AREIT delivered on its growth plans, resulting in 92 percent percent total shareholder return from dividend yield and price appreciation.

“We are focused on delivering our commitment to grow our assets, diversify our geographic and tenant base and create more shareholder value with increasing dividends and price appreciation. With this new asset infusion, we foresee AREIT’s dividend per share to increase, in addition to the recently concluded asset infusions last year”, said AREIT president and CEO Carol T. Mills.

SOURCE: Bilyonaryo

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Ayalas’ property arm rebounds from pandemic with 40% spike in profit

Property giant Ayala Land Inc. ended 2021 on a high note, racking up P12.2 billion in net income amid a spike in revenues owing to relaxed quarantine restrictions.

Total revenues climbed 10 percent to P106.1 billion.

Property development accounted for P75.9 billion of total revenues, up 14 percent due to construction progress and higher project bookings.

Sales reservations went up 13 percent to P92.2 billion, driven by solid demand for lots in Southern Luzon by Ayala Land Premier and Alveo.

Reservations from lot sales alone jumped 36% to P41.5 billion.

Reflecting its bullishness on the residential segment, ALI rolled out 22 projects worth P75.3 billion in 2021 or seven times more than in 2020. 

Commercial leasing revenues, however, were five percent lower at P20.6 billion as malls, hotels and resort operations remained limited for most of the year.

Shopping center revenues slipped 13% to P7.9 billion, and hotel and resorts revenues dipped 12% to P2.8 billion.

Revenues from office leasing, on the other hand, went up five percent to P9.9 billion as BPO and Corporate operations remained stable throughout the period.

Relaxed restrictions in the fourth quarter translated into higher mobility and tenant sales which boosted commercial leasing revenues by 35% to P6.4 billion, primarily as shopping center revenues grew 101% to P3.0 billion from the previous quarter and 106% from the same quarter in 2020. Similarly, hotels and resorts revenues improved by 55% to P981 million from the third quarter of 2021 and 62% from the same period last year.

Our focus in 2021 was to ensure we provided the right environment in our communities for our residents, businesses, and institutional locators to adapt and function better while executing our business recovery plans. As the economy moves to full reopening in 2022, we look forward to the acceleration of our business activity backed by our landbank, diversified portfolio, and market-leading estate developments,” said Bernard Vincent O. Dy, Ayala Land President and CEO.

Ayala Land ended 2021 with a net debt-to-equity ratio of 0.77:1, an average borrowing cost of 4.4%, and maturity of 5.3 years as it actively managed debt to keep its balance sheet strong. Capital expenditures totaled P64.0 billion, wherein 52% was spent on residential projects, 17% on land acquisition, 15% on commercial projects, and 14% on estate development.

SOURCE: Bilyonaryo 

 

 

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Strong occupancy and rent collection efforts lift AREIT’s 2021 net income to P2.27B

The country’s first real estate investment trust, Ayala-backed AREIT Inc. posted strong performance last year with profit growing by 56 percent to P2.27 billion.

The robust growth in AREIT’s net income was driven by a stable occupancy of 98 percent and strong rental collection efforts at 98 percent.

Revenues soared 63 percent to P3.32 billion while earnings before interest, taxes, depreciation and amortization jumped 55 percent to P2.4 billion.

AREIT’s board of directors approved the declaration of dividends of P0.47 per share for the fourth quarter of 2021 to be distributed on March 25 to stockholders on record as of March 11.

This brings the company’s full-year dividends from its 2021 income to P1.77 per share, 34 percent higher than 2020 and 12% higher than its REIT plan projection during the IPO due to asset acquisitions last year.

The company acquired Ayala Malls 30th, a 75,000 square meter commercial development located in Pasig City, and the 98,000 sqm of land at Laguna Technopark leased by Integrated Micro-Electronics.

SOURCE: Bilyonaryo

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Ayalas to raise P45B from debt market to refinance property arm’s debt

Real estate giant Ayala Land Inc. (ALI) has approved a plan to raise as much as P45 billion from the issuance of retail bonds or corporate notes.

The money to be raised from the offering will be used to refinance maturing debt and partially cover general corporate requirements.

ALI’s board likewise set additional grounds for disqualification of an independent directors.

It approved the temporary disqualification of a director who has been absent or has not participated in more than 25 percent of all meetings, the review of all related party transactions, and new sections covering the chief risk officer and his functions.

The company’s board approved the imposition of more stringent requirements on its directors and officers who wish to trade on our ALI shares, the updating of penalties for violation of the insider trading policy, and the expansion of the coverage of the policy to apply to directors and officers (vice president and up) in respect of their trading activities involving listed subsidiaries AyalaLand Logsitics Holdings Corp. and AREIT.

SOURCE: Bilyonaryo

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Revenge spending: Ayala Land amasses P2.16B land in last 12 months

Ayala Land has spent nearly half of the P4.6 billion it raised from the sale of its Ortigas office and shopping mall building to AREIT to bulk up its land bank in the middle of the pandemic.

In a report to the Philippine Stock Exchange, Ayala Land reported that it spent a total of P2.16 billion for land acquisitions from January 2021 to January 2022.

Ayala Land snapped up properties in Pampanga (P955 million), Tarlac (428 million), Mandaluyong (P335 million), Cavite (P212 million for two properties), Ilagan (P81.6 million), Laguna (P67 million), Quezon City (P61 million), and Batangas (P20 million).

The real estate giant sold its The 30th office and shopping mall building in Meralco Avenue in Pasig for P5.1 billion.

Here is a full breakdown of how Ayala Land spent its AREIT funds:

1) Pampanga land acquisition P955 million

2) ALI Eton Property Development Parklinks P833 million

3) One Ayala BPO P558.5 million

4) Tarlac land acquisition P427.8 million

5) One Ayala mall P384.7 million

6) Mandaluyong land acquisition P335 million

7) Gatewalk Central retail-office building in Cebu P164 million

8) Cavite land acquisition P135 million

9) Avida Towers Abreeza Tower 1 P119.7 million

10) Arbor Lanes 5 towers in Taguig P97.2 million

11) Orean Place condo in Quezon City P87.3 million

12) Avida Towers Vireo 3 towers in Taguig P83.8 million

13) Ilagan land acquisition P81.6 million

14) Cavite land acquisition P77 million

15) Laguna land acquisition P67 million

16) Quezon City land acquisition P61 million

17) Avida Towers Sola 2 towers in Quezon City P40 million

18) Amaia Steps Alabang Helena low rise condo P36 million

19) Batangas land acquisition P20 million

SOURCE: Bilyonaryo

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Ayalas to swap five property assets in exchange for P17.4B worth of ALI shares

Property giant Ayala Land Inc. has entered into a deal to acquire P17.4 billion worth of property assets from parent firm Ayala Corp. (AC), further bulking up its land bank and portfolio of leasable assets.

In a disclosure to the stock exchange, ALI said its board of directors approved a property-for-share swap with Ayala Corp. and Mermac.

Under the transaction, AC and Mermac will transfer five assets to ALI in exchange for 311.58 million shares valued at P55.80 each. Of the total, AC will subscribe to 309.6 million primary common shares valued at P17.275 billion while Mermac will subscribe to 1.98 billion shares worth P110.6 million.

These assets include a 50 percent stake in Ayala Hotels Inc., owner of the 19,858 square meter Manila Peninsula property and ALI’s partner in Park Central Towers; 100 percent ownership in Darong Agricultural and Development Corp. which owns a 6.33 million square meter lot in Sta. Cruz, Davao Del Sur; office units and parking lots at Tower One 32nd to 35th floors in Makati; the site of Honda Pasig and a 117,389 sqm lot in Calauan.

The Manila Pen property is a prime development opportunity in the Makati central business district while the Honda property can be converted into residential development for ALI’s affordable housing unit Avida.

“We are delighted about this transaction. We view ALI as the natural owner of these properties and is in the best position to optimize their value. In addition, this deal is consistent with Ayala’s initiative to increase its ownership of ALI, similar to the block purchases of ALI shares we have done over the past year,” said Fernando Zobel de Ayala, president and CEO of AC and chairman of ALI.

For his part, ALI president Bernard Vincent Dy said the properties are in key locations and would further expand the company’s landbank and commercial assets.

“We are confident that the inclusion of these assets will further create value for our stakeholders.”, said Dy.

AC, ALI, and Mermac are targeting to complete the requirements within the year.

Once the deal is approved by regulatory bodies, AC’s ownership in ALI will increase to 47.2 percent from 46.07 percent.

SOURCE: Bilyonaryo

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Ayala-backed REIT taps debt market to fund acquisitions

The country’s first real estate investment trust, AREIT Inc. secured the greenlight from the Securities and Exchange Commission to proceed with the issuance of P15 billion in fixed-rate bonds.

AREIT, which is sponsored by property giant Ayala Land Inc., will initially sell P3 billion worth of three-year bonds at face value.

The offer will run from December 13 to 16 in time for the bonds’ listing at the Philippine Dealing & Exchange Corp. on December 23.

This marks AREIT’s first foray into the debt market.

Net proceeds will be used to refinance debt and partly fund the acquisition of The 30th, a mixed-use development in Pasig City.

AREIT plans to issue the bonds in one or more tranches within a period of three years.

BPI Capital Corp. and BDO Capital & Investment Corp. are the joint lead underwriters and bookrunners for the issue.

The acquisition of new assets is expected to boost AREIT’s net income and dividends.

Cityland, meanwhile, will offer to the public P500 million worth of commercial papers. The listed real estate company expects to net up to P495,688,725 from the offer, for project-related costs, payment of maturing loans or notes, and interest expense.

Among others, the proceeds from the offering will be used to partially finance the construction of One Premiere, a 27-storey commercial and residential condominium in Las Pinas City.

SOURCE: Bilyonaryo

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New year, new posts: Ayalas reward long-time ALI executives with promotion to VP

Ayala Land Inc. has rewarded three veteran officers with a step up the corporate ladder.

The ALI board chaired by bilyonaryo Jaime Augusto Zobel de Ayala has approved the promotion of Raquel S. Cruz, Stephanie J. Lingad and Richard T. Yap from assistant vice president to vice president effective January 1.

Cruz, who has been with ALI for 17 years, is currently the chief operating officer of Avida Land, ALI’s subsidiary for the middle-class. The 55-year old is an Economics graduate of the University of the Philippines and has an MBA from Ateneo de Manila.

Lingad, who has been with ALI for 18 years, is the COO of Amaia Land which caters to the mass housing market. She has a Management degree and MBA from Ateneo.

Yap, who has been with ALI for 28 years, heads the construction management team of ALI’s construction arm, Makati Development. The 53-year old is a Civil Engineering graduate from UP and has an MBA from De La Salle University.

SOURCE: Bilyonaryo

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Ayalas’ real estate business thrives despite tougher lockdown measures: ALI profit up 38% in Q3

Property giant Ayala Land Inc. went full steam ahead with third quarter earnings rising by 38 percent to P2.6 billion despite the reimposition of stricter quarantine rules to curb the rise of coronavirus cases.

ALI registered P21.8 billion in revenues during the period, 11 percent higher than the second quarter but a decline of 3 percent quarter-on-quarter.

 “Our business recovery was sustained despite the reimposition of stricter quarantine measures last August. This was led by our residential business which continued to benefit from stable construction and sales this year,” said ALI president and CEO Bernard Dy.

Despite mobility restrictions during the third quarter ALI rolled out four new projects worth P13 billion.

These include Ayala Land Premier’s Ayala Greenfield Estates 4C Tranche 1 in Calamba, Laguna and Lanewood Hills Phase 2 in Silang, Cavite; Avida’s Centralis Towers in Pasay City; and Amaia’s Steps Pasig Clara.

For the first nine months, Ayala reported a 35 percent jump in net income to P8.6 billion on the back of a 15 percent growth in revenues to P72.6 billion.

Ayala Land launched a total of 18 projects during the nine-month period with a combined value of P59.1 billion, significantly higher than the P10.6 billion worth of launches in 2020.

Sales reservations grew by 15% to P70.1 billion, mainly driven by the residential business which continued to benefit from stable construction and sales this year,

“We remain positive that with the reopening of the economy, business activity will gain momentum in the fourth quarter, especially for segments like our malls, hotels and resorts which broadly rely on increased mobility,” Dy said.

SOURCE: Bilyonaryo

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