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Wednesday, May 13, 2015

Ayala Land Inc: 1Q15 earnings on track to meet forecast

1Q15 earnings up 19% to Php4.1 Bil. ALI disclosed that earnings for 1Q15 grew 19% from Php3.5 Bil to Php4.1 Bil driven by strong growth in revenues. Real estate revenues grew 19% y/y to Php25.1 Bil from Php21 Bil in 1Q14. Performance of ALI in 1Q15 is in line with estimates, with income accounting for 24.6% of COL and 24% of consensus estimates.

Growth coming from all segments. ALI’s overall revenues grew 19% to Php25.1 Bil. Residential sales continue to drive the growth but all other segments also improved y/y. Residential revenues grew on higher completion of projects. Take-up sales remained strong, growing 9.9% y/y to Php23.4 Bil. Revenues from shopping centers grew by 11% to Php3.2 Bil due to higher occupancy and increasing foot traffic in new malls Fairview Terraces and UP Town Center. Additionally, revenues from office leasing increased by 14% to Php1.2 Bil during the same period last year due to contribution of new offices, higher occupancy and higher average rental of existing offices. Lastly, revenues from hotels and resorts grew by 9% to Php1.5 Bil primarily driven by the higher occupancy of its existing hotels and resorts.

Maintain BUY with FV estimate of Php43.17. We maintain our BUY rating on ALI with a fair value estimate of Php43.17. We like ALI as it continues to deliver solid earnings every year while maintaining an aggressive growth stance. We will provide more details on ALI’s 1Q15 performance after the company’s briefing. 

- COLfinancial

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