AYAAF - Ayala Land: Recovery In Property Development Revenue And REIT Spin-Off Are Key Catalysts
Elevator Pitch
Philippines-listed property developer Ayala Land, Inc. (AYAAF) (AYAAY) [ALI:PM] currently trades at 21.9 times consensus forward FY2019 P/E, representing a slight discount to its historical five-year average P/E of approximately 23 times.
The company's -11% YoY residential revenue decline in 1H2019 gives investors an opportunity to buy the Philippines' largest residential property developer at a discount to historical mean valuations. Ayala Land continues to grow its recurring income streams, and it is relatively unaffected by the recent issue of Philippine Offshore Gaming Operators due to its diversified revenue base.