[ bworldonline.com ]
LOCAL DEBT watcher Philippine Ratings Services Corp.
(PhilRatings) assigned the highest credit rating for Ayala Land, Inc.’s
(ALI) proposed issuance of fixed rate bonds worth P8 billion.
In a statement issued Monday, PhilRatings said it had given the
listed property developer’s proposed bonds a PRS Aaa rating with a
stable outlook. The rating indicates that ALI has an extremely strong
capacity to meet its financial commitment, while the obligation is “of
the highest quality with minimal credit risk.”
Meanwhile, a stable outlook means that the assigned rating is unlikely to change in the next 12 months.
The bonds represent the remaining unissued balance out of the
company’s P50-billion shelf registration program filed with the
Securities and Exchange Commission back in 2016.
ALI said the funds raised from the issuance will be used to partially
finance several projects in the pipeline, including the Seda Hotels Bay
Area in Parañaque, Seda Hotels Bonifacio Global City expansion, leasing
projects in Arca South, the Taguig Integrated Terminal Exchange, and
the Vertis North Corporate Center Tower 3.
The company will also be funding projects outside Metro Manila,
namely Ayala Malls Capitol Central in Bacolod, the Bacolod Capitol
Corporate Center, and the Cebu Central Bloc mixed-use complex.
PhilRatings took into account ALI’s well-diversified portfolio with a
sizable and strategic landbank, a healthy outlook for the real estate
industry, its rising profitability and healthy cash flows, and a sound
capitalization with manageable debt level and mix.
“PhilRatings shall continuously monitor developments relating to ALI
and may change the ratings at any time, should circumstances warrant a
change,” the debt watcher said.
ALI has programmed to spend P110.8 billion in capital expenditures
this year, the highest allocation in the company’s history as it looks
to take advantage of the strong demand for real estate properties.
Alongside the higher capital spending, the company has also outlined the launch of P125 billion worth of projects for 2018.
ALI generated a net income attributable to equity holders of the
parent of P13.5 billion in the first six months of 2018, 18% higher year
on year as revenues climbed 25% to P80.4 billion.
Revenues from the sale of residential lots and office spaces alone
surged by 27% to P55.7 billion, while the sale of commercial and
industrial lots went up by 16% to P3.9 billion.
The property giant recorded reservation sales of P72 billion during
the six-month period, indicating the sale of P12 billion worth of
residential units every month.
The company targets to generate P40 billion in revenues by 2020,
aiming for an equal contribution from both residential development and
leasing segments by then.
Shares in ALI rose by six centavos or 1.46% to end at P41.60 on Monday’s trading session. — Arra B. Francia
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