Indeed, the year 2020 was unlike any other. When our country went into enhanced community quarantine (ECQ) on March 17, 2020, overnight, majority of our businesses were forced to scale back operations. We quickly shifted our mindset from one of growth – a plan we have been executing since the aftermath of the 2008 Global Financial Crisis – to one of stability, strength, and solidarity.”
Bernard Vincent O. Dy
President and CEO, Ayala Land Inc.
WHO WE ARE
Ayala Land is the largest property developer in the Philippines, with a solid track record of developing large-scale, integrated, mixed-use, sustainable estates that are now thriving economic centers in their respective regions.
Following the success of the Makati Central Business District, Ayala Alabang, Cebu Park District, Bonifacio Global City, and Nuvali, it continues to increase its footprint by building estates that reach and benefit more people.
With 12,483 hectares of landbank, 30 estates, and a presence in 57 growth centers across the country, Ayala Land offers a balanced and complementary mix of residential developments, shopping centers, offices, hotels and resorts, and other businesses. Construction and property management services are led by its subsidiaries, Makati Development Corporation and Ayala Property Management Corporation, respectively.
It pioneers standards and practices in all its developments that reflect the value the company places on sustainability. As a responsible corporate citizen, Ayala Land acts with integrity, foresight, and prudence.
Focused on its vision of “enhancing land and enriching lives for more people,” it empowers its employees to deliver quality products and services and build long-term value for its shareholders.
12,483hectares of landbank
30Estates
57growth centers
MARKET OUTLOOK
COVID-19 severely impacted the Philippine economy and the property sector. The lockdowns constrained mobility and economic activity, resulting in the GDP contracting by 9.5% in 2020. However, remittances from overseas Filipinos were resilient at US$29.9 billion. Gross international reserves reached an all-time high of US$110 billion, equivalent to 12 months’ worth of imports, supported by a strong Philippine peso, which appreciated by 5% to ₱48.03 to US$1. In light of these, Ayala Land is cautiously optimistic about the prospects of recovery, which is largely dependent on the continued reopening of the economy and the success of the ongoing vaccination rollout in the country.
Ayala Land is preparing for a V-shaped recovery, which may take two to three years before reverting to pre-pandemic growth levels. For 2021, it has budgeted ₱88 billion in capital expenditures and is ready to launch ₱100-billion worth of residential products given continuing demand. It continues to be positive about the long-term prospects of the economy and the real estate sector with fundamental growth drivers still in place.
CAPITALS
Natural
Land bank strategically located in key growth centers for immediate and long-term development
Intellectual
Unique master-planning process integrating product lines to create sustainable and vibrant communities and fosters urban development
Manufactured
Wide range of products that caters to all markets and segments of the property sector
Social
Quality of products and services that upholds strict sustainability and corporate governance practices for its customers and stakeholders
Human
A decentralized structure empowers its people and provides the flexibility to execute its strategy in a fast and efficient manner
Financial
Strong balance sheet to support growth plans and prudent fiscal policy to maintain the strength of its financial position
Apulit, in Taytay Bay in North-eastern Palawan, is an Eco-Adventure Island Resort that offers exciting activities to its guests.
HOW WE CREATE VALUE
Estate Development
Develops estates that host its property development and commercial leasing products.
Property Development
Offers residential, office for sale, and commercial and industrial lots across various segments through five brands: AyalaLand Premier, Alveo, Avida, Amaia, and Bellavita.
Commercial Leasing
Develops and operates malls, offices, hotels and resorts, and emerging leasing formats.
Construction and Property Management
Owns its construction and property management companies, Makati Development Corporation and Ayala Property Management Corporation, to ensure quality throughout the entire project life.
Strategic Investments
Ayala Land holds investments that complement its core business: AREIT, Inc., AyalaLand Logistics Holdings, Corp., Cebu Holdings, Inc., Ortigas Land Corp., MCT Bhd., and other ventures.
BUSINESS REVIEW
Estate Development
Ayala Land launched South Coast City in 2020 bringing its total estates to 30 across the country. Located in the Cebu South Road Properties in Cebu City, South Coast City is a 26.3-hectare estate developed through a partnership of Ayala Land, its listed subsidiary Cebu Holdings, Inc., and SM Prime Holdings. The waterside mixed-use estate will have an entertainment and sports arena, a convention center, a one hectare park, a commercial center, and other facilities.
The Makati Central Business District launched a number initiatives as a response to the crisis. Bike lanes were installed on its main roads to allow safe mobility. A passenger queueing system was implemented at various points along Ayala Avenue to ensure social distancing. Assistance was likewise provided to Makati Medical Center in setting up a COVID-19 treatment center.
In BGC, several projects were undertaken to support mobility given the lack of public transportation. 15 kilometers of bike lanes were completed in June, resulting in a ten-fold increase in cyclists in the estate. To support business recovery, BGC implemented curbside pick-up points near malls, and extended outdoor dining.fairs in open spaces.
In NUVALI, QualiMed Sta. Rosa has been converted into a COVID-19 referral hospital. It now has a triage holding area, biosafety level two laboratory, and expanded ICU beds exclusively for COVID-19 patients.
Property Development
The property development business, composed of the sale of residential units and house-and-lots, office units, and commercial and industrial lots contributed ₱57.9 billion in revenues despite the pandemic. Adapting to the new normal, residential brands generated ₱13.6 billion of sales from digital selling channels, 17% of total sales reservations. Property Development contributed 67% of real estate revenues.
Residential
Revenues from the sale of residential lots and units and MCT Bhd’s operations declined 44% to ₱47.8 billion.
Commercial and Industrial Lots for Sale
Slower take-up and limited inventory weighed on commercial and industrial lot revenues, down 42% to ₱6.6 billion. The launch of South Coast City in Cebu will add 11 commercial lots in fresh inventory.
Office for Sale
Revenues from the sale of office units was severely impacted by the pandemic, declining 72% to ₱3.5 billion. No new projects were launched in 2020, in line with Ayala Land’s financial sustainability initiatives. Limited inventory coupled with slower completion of projects led to the segment’s lower contribution.
67%Percent of Ayala Land’s
real estate revenues
Besides open spaces and parks, BGC also has many art pieces that contribute to its overall ambiance.
Commercial Leasing
The commercial leasing segment composed of shopping centers, offices for lease, hotels and resorts, and emerging leasing formats, likewise faced a difficult year because of the health crisis. Ayala Land made enhancements to digital platforms and introduced new product offerings in response to this. The segment’s total revenues reached ₱21.9 billion, 44% lower than the previous year, accounting for 25% of real estate revenues.
Shopping Centers
Ayala Malls provided rent condonation and subsidy to its merchants throughout the quarantine period. Total support extended amounted to ₱6.2 billion by year-end. To protect mall patrons, health and safety measures were strictly implemented in accordance with government protocols.
Ayala Malls also focused on various digital initiatives in response to the new operating landscape. Z!ng, its digital concierge and loyalty app, was further enhanced to include a virtual mall with 61 merchants and an eGift Marketplace. It also rolled out the AyalaMalls Neighborhood Assistant, a personal shopper service for mall patrons. Other initiatives introduced were Live Online Shopping at Pasyal TV and DriveBuy, a curbside pick-up facility for callers and online shoppers.
The Vermosa Sports Hub in Cavite is a state-of-the-art sports facility envisioned to be the premier training ground of amateur and professional athletes.
| STRATEGY | 2020 PERFORMANCE | 2021 PRIORITIES |
| 5-point Action Plan | ||
| Financial Sustainability | Improved FY 2020 net debt to 0.74x and lowered capex to ₱64 billion from original target of ₱100B | V-shaped recovery in the next 2-3 years
|
| Protecting the Workforce | Granted access to healthcare and enabled work from home arrangements | |
| Serving our customers | 5,000 APMC personnel on site across 253 managed properties
Maximized digital platforms across all businesses |
|
| Helping the community | Total ₱7.2 billion financial support and constructed COVID-19 facilities and swabbing booths | |
| Thinking ahead to recover | Prepared the organization for reintegration | |
| THE VALUE WE CREATE | |
| Environment | Upholds Philippine biodiversity and ecosystems within and adjacent to its land bank.
|
| Communities | Provides spaces that are site resilient, pedestrian-friendly, public transport- connected, and eco-efficient, uplifting standards of Filipinos.
|
| Employees, Construction Workers, Suppliers, Service Providers, and Consultants | Contributes to local employment, skills development, and career growth.
|
| Investors, Analysts, Creditors | Provides consistent growth in shareholder returns, ensures long-term value for investors, and fulfills credit obligations.
|
| Property Buyers, Residents, Shoppers, Mall locators, Office Tenants, Tourists and General Public | It provides homes and venues for business and leisure that support the community and spur economic growth.
|
31F Tower One Ayala Triangle and Exchange
Plaza Ayala Ave., Makati City 1226, Philippines
+63 2 7 9083111
www.ayalaland.com.ph
Investor Relations
investorrelations@ayalaland.com.ph
Sustainability
sustainabilityteam@ayalaland.com
Learn about Ayala Land’s
Learn more about Ayala Land