2 weeks ago
7
Merkado Barkada
February 28, 2025 | 10:51am
In its recent analyst briefing, Ayala Land [ALI 22.45 ?0.2%; 148% avgVol] said that it “remains optimistic about international sales”, and are planning to increase their international sales team by 2% from 7,600 sellers to 7,800 sellers, and to open two new international offices (one in LA, and one in the UK). ALI said that it has noticed a “wait and see” attitude from US buyers in recent months, which it attributes to uncertainties about the incoming Trump presidency and about what new policies might do to the market and to interest rates. ALI also noted that it has purposefully leaned into the premium development space during this high-rate environment, which aligns well with its focus on international buyers; it believes that mortgage rates need to come down “50 basis points to 75 basis points to really encourage the core market to come back”.
MB BOTTOM-LINE: I really enjoy hearing about ALI’s pivot toward the premium segment. As they talk about in this question and answer period, they believe that they were more proactive than some of their real estate development peers in adapting to the “core” market downturn and to the shifts in consumer behavior around interest rates, inflation, and the perception of stability. Jewel attended the meeting on MB’s behalf and took amazing notes for my (and our) benefit. She summarized the financial performance section, but attempted to get a word-for-word record of the question and answer portion, which I believe to be the most important part. If you accept that these are just our own personal notes and may not be relied on as completely accurate representations of what happened, you can check out our 7-page Google doc (Ayala Land Briefing - FY24). Taking notes in a meeting like this is more art than science, so if you’re forgiving and willing, check it out! There’s a lot of detail there about ALI’s specific launches, and about the timing of some of its pre-sales and revenue recognition that could be interesting to investors with a deep interest in the real estate industry.
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