After the offer of P10-million-billion PM bonds and commercial property injection in their real estate investment trust unit, AYALA LAND, Inc. (ALI) attracted investors last week.
The Philippines Bond revealed that last week, there were 55.38 million ALI shares exchanged for P1.97 billion, the third most successful stock traded in this area between the 15th and the 19th March.
The Ayala group property business ended 6.8 percent below its P37 per share on Friday, 12 March. The price has fallen by 17.9 percent since the beginning of the year.
In the course of an interview text, Toby C. Arce, Sales Manager at Globalinks Securities and Stocks, Inc., told ALI that the AYala Group investment trust firm’s P10-billion bond sales and its commercial property injection of P15,5 milliards led to the price movement last week.
In its text message, the share movement of the stock last week resulted from the sudden rise in coronavirus disease (COVID-19) cases last week, which enabled investors to purchase ALI at a lower rate. Aniceto K. Pangan said that it had been the first time the stock had been affected.
On 12 March ALI received the proposal to offer P10billion of fixed-rate bonds due in 2025 to compensate for early repayment of its 2025 fixed-rate P8-billion bills and to financed its ventures in Laguna and Cavite under the Alveo Land Unit, Inc. and in Quezon under the Avida Land Corp. The Securities and Exchange Commission also received its plans for 2025.
ALI accepted separately, in the process of a land-for-Share exchange, an injection of commercial property worth P15,46 billion in AREIT, Ink. last week in which ALI subscribes to 483,25 million primary shareholdings of AREIT Inc. at P32,00 each.
The leasing portfolio of AREIT would rise from 344 000 m2 to 549 000 m2 (2.000 m2), with a deposited asset valuation of P52 billion of P37 billion.
In addition, AREIT raised the capital stock from P11,74 billion on its approved capital to P29,50 billion.
In its annual meeting on 23 April, all companies will be subject to regulatory approval, as well as AREIT shareholders.
“ALI has particularly high value levels based on existing values. The firm trades at very high earnings ratios, with a price-to-earnings (P/E) ratio of 48.93 times expected earnings by 2020,” says Mr. Arce.
Investors use the price-to-earnings ratio in order to find the appraisal of a traded firm when referring the actual share price to the profits per share. It reflects the ability of consumers to pay by peso of sales.
Since ALI’s attributable net revenue was severely affected by the lockout constraints during the pandemic, it fell 73.7% last year to P8.73 billion, from previously P33.19 billion.
Nevertheless, Mr. Arce said ALI is still fundamentally powerful.
“Ayala Land has recognised COVID-19 as a major danger that impacted its company by 2021 in 2020. The pandemic’s lessons will enable the company to strengthen business continuity plans,” he said.
This year, he sees ALI rebounding to P23.151 billion, and in 2022 to P30.529 billion, with a gradual turnaround in the economy.
Mr. Pangan, for his part, said immobilization business feelings were diminished by the rise in infection rates of COVID-19 as this contributed to tighter constraints, which contribute to economic deceleration.
“The net profits would, in principle, be another problem this year, based on how the epidemic will be managed and the economic operation will become normal,” he added.
Mr Pangan predicts the immediate amount of ALI help to be P33 and the immediate resistance to P36.75 this week.
Mr. Arce said that ALI can still surpass its output in the weeks or months to come, although P37-P38 are resistant.