ACCORD CAPITAL EQUITIES CORPORATION

COMPANY REPORT: AYALA LAND, INC - ALI

Outlook: LONG-TERM BUY

PRICE (trade date) Price Range (52-wks) PE Ratio (TTM) Dividend Payout (3 yr average) Outstanding Shares % Free Float

Php17.18
Php9.90 – 18.70 42.3 17.69% 13,023,363,594 46.00%
(November 9, 2010)

COMPANY PROFILE:
The Ayala Group's property arm engaged in strategic landbank management, residential development, shopping centers, corporate and geographic businesses. It
sources bulk of its revenue from real estate sales, rentals and construction contracts (86.34% - 3 yr average) and hotel operations (4.35% average.) Ayala Corporation,
its parent, holds 53.21% of the firm's issued and outstanding capital stock. The Company continues to pursue major high-end land development projects, residential
and office condominium development, liesure community projects and shopping center operations.

OVERVIEW:
The Company continued to post strong top line growth with real
estate sales increasing 24% for the first 9-months year-on-year. This
despite lower contributions from its shopping mall segment due to the
closure of Glorietta 1. Bottom-line grew 35% to php3.935B, pulled by a
36% rise in Q3 profits. This stretches the quarter-on-quarter growth
trend to seven, with an average quarterly growth of 8 percent.
Effective cost controls boosted pre-tax margins. Growth was
sustained by strong residential sales with an average sales take up of
php3B per month, increased occupancy rates in its office leasing
operations (BPO) and mall GLA occupancy rate of 93 percent.

Moving forward, the Company is looking at its expansion to areas such

as Baguio, Subic, Iloilo, Palawan and Davao. It has launched 48
projects in 16 growth centers. It has several shopping centers, BPO
leasable spaces as well as resorts and hotels lined up to begin
operations in the next two years.

The Company has also incorporated the Ayala Land Commerical REIT,
PER SHARE DATA
Inc. in anticipation of a possible IP in 2011.
2010 (9mos) 2009 2008 2007
Technical signals are mixed with price action showing a possible break
under both 10pd and 50pd EMA. STO supports this suggestion, with BOOK VALUE 4.290 4.550 4.260 3.240
momentum apparently having waned. Nevertheless, MFI and MACD
EARNINGS 0.3000 0.3100 0.3700 0.3300
draws the view that the downside may be minimal, positing a possible
entry point at the php17.00-line. Major support given the latest run is at Dividend Payout (% of Net Income) 30.00% 19.31% 16.20% 17.83%
php16.50. We had previously tagged the issue a Long-Term Buy. We
find no reason to change the outlook. PE (based on trailing year EPS) 60.3x 34.4x 45.4x 64.2x

31.9x 15.4x 15.4x 43.3x

INCOME DATA ( in millions PHP)

Year Ended Revenues/ Sales EBIT Net Income NPM %

2010 (9mos) 27,874.000 6,007.000 4,445.000 15.94%

2009 30,455.244 5,845.938 4,039.256 13.26%

2008 33,743.983 7,447.957 4,812.348 14.26%

2007 25,707.229 6,053.136 4,386.362 17.06%

BALANCE SHEET DATA ( in millions PHP)

Year Ended Current Ratio Quick Ratio Debt Ratio Basic Earning Power ROA ROE

2010 (9mos) 1.830 1.200 0.149 5.07% 3.75% 7.95%

2009 1.950 1.400 0.170 5.41% 3.74% 6.82%

2008 1.880 1.340 0.320 7.40% 4.78% 8.72%

2007 1.650 1.230 0.120 7.29% 5.29% 10.27%

DISCLAIMER: THE MATERIAL CONTAINED IN THIS PUBLICATION IS FOR INFORMATION PURPOSES ONLY. IT IS NOT TO BE REPRODUCED OR COPIED OR
MADE AVAILABLE TO OTHERS. UNDER NO CIRCUMSTANCES IS IT TO BE CONSIDERED AS AN OFFER TO SELL OR A SOLICITATION TO BUY ANY
SECURITY. WHILE THE INFORMATION HEREIN IS FROM SOURCES WE BELIEVE RELIABLE, WE DO NOT REPRESENT THAT IT IS ACCURATE OR COMPLETE
AND IT SHOULD NOT BE RELIED UPON AS SUCH. IN ADDITION, WE SHALL NOT BE RESPONSIBLE FOR AMENDING, CORRECTING OR UPDATING ANY
INFORMATION OR OPINIONS CONTAINED HEREIN. SOME OF THE VIEWS EXPRESSED IN THIS REPORT ARE NOT NECESSARILY OPINIONS OF ACCORD
CAPITAL EQUITIES CORPORATION ON THE CREDIT-WORTHINESS OR INVESTMENT PROFILE OF THE COMPANY OR THE INDUSTRIES MENTIONED.