ALI to buy back more shares

MANILA, Philippines — Property giant Ayala Land Inc. (ALI) plans to continue buying back shares to boost its share price, which the company believes has been trading at a steep discount.

ALI president and CEO Anna Ma. Margarita Bautista-Dy said the company has been actively repurchasing its shares.

“At these levels, we believe that ALI shares are trading well below its fair value. Hence, we have actively been repurchasing our shares and to date, we have acquired P2.4 billion worth of ALI shares,” Bautista-Dy said.

“And we will continue implementing our buyback program as long as we see our shares trading at a steep discount to its intrinsic value,” she said.

ALI shares have recovered strongly last year up to February this year but has seen a significant downtrend since March.

ALI has been trading at an average price of P28.30 per share from a 52-week high of P37.65. Its 52-week low is P23.15 per share.

“We constantly monitor the company’s share price, review market events and engage with analysts and shareholders to identify the drivers affecting its performance,” Bautista-Dy said.

“We can attribute the recent share price decline to continuing high inflation in the US and the consequent pronouncements from the US Fed Chair Powell that they will delay interest rate cuts. This has dampened investor interest in equities, particularly those in the real estate industries,” she said.

ALI, however, remains bullish on its outlook as a company this year.

“We are optimistic about 2024,” Bautista-Dy said.

ALI has earmarked P100 billion for capital expenditures this year, 16 percent more than last year’s capex of P86.2 billion, and is preparing to launch P115 billion worth of property development products.

“In 2023, our performance was good with an 18 percent growth in revenues and a 32 percent growth in net income. We expect this growth to continue,” Bautista-Dy said.

ALI stockholders approved yesterday the proposed merger of 34 entities that are wholly owned directly by the company, or through AyalaLand Estates Inc. and AyalaLand Hotels and Resorts Corp., with ALI as the surviving entity.

ALI chief finance officer Augusto Bengzon said the transaction will require the approval of the Securities and Exchange Commission (SEC).

Upon approval, he said there will be a need to secure the clearance of the Bureau of Internal Revenue (BIR) to transfer the properties to ALI as the surviving entity.

Afterwards, ALI will list the shares with the Philippine Stock Exchange (PSE).

“We are looking at the timeline of six months for the SEC approval, another six months for the BIR clearances and six months for the PSE approval. We are looking to complete the transaction on or before the first half of 2026,” Bengzon said.

“The rationale of this merger is to simplify the ownership structure for operational synergies, efficient funds management and simplified reporting to government agencies,” he said.

ALI is a developer of large-scale, integrated, mixed-use and sustainable estates that are now thriving economic centers.