BWorld 4/20/2009

The country’s largest property developer Ayala Land, Inc. has been attached a range trading tag by Papa Securities Corp. as the brokerage
firm expects the overseas Filipino workers (OFW) market to contribute less to its topline this year.

Analyst Daniel C. Picache said, “Despite positive growth and revenues for most property firms, based on the fundamentals we see, there’s still going to be weakness for Ayala Land in 2009.”

Mr. Picache attributes this primarily to a 30% slump in sales and revenues last year from residential projects catering to OFW households — the firm’s major source of profit. Papa Securities expects flattish growth for OFW remittances this year. Also contributing to its troubles are rising back-out rates and declining reservations, the analyst added.

For 2009, Mr. Picache said investors should expect the stock to hold between P6.10 to P6.60.

On a long-term basis, though, Mr. Picache emphasizes that Ayala Land remains a good long-term investment.