Aboitiz Equity Ventures, Inc. (AEV) Earnings Call Transcript & Summary

Good afternoon. Welcome to Aboitiz Equity Ventures Earnings Results Briefing for the first 9 months of 2024. My name is Jacqui De Jesus, and I will be your moderator for today's call. So before we begin, please allow me to go over the house rules. [Operator Instructions] So the CEO of Aboitiz Foods, Tristan Aboitiz, will kick us off with the results of our Food segment. He will be followed by Dave Rafael, the CEO and President of AboitizLand; after him, Cosette Canilao, the President of Aboitiz InfraCapital will update us with their performance. And finally, Toto Hilado, the CFO of Aboitiz Equity Ventures, will close this out with the group's consolidated financial performance. After the presentations, we will open the floor for Q&A. Questions related to UnionBank and Aboitiz Power, which we discussed in the previous calls, will be addressed offline after this briefing. So with that, let me turn you over to Tristan.

Thanks, Jacqui, and good afternoon, everyone. Thank you for joining us this afternoon. So let's get to it. Let's jump into the financial highlights for Aboitiz Foods as of the third quarter of 2024. So we're pleased to report that for the first 9 months of the year, we achieved a net income after tax of PHP 2.3 billion, an increase of 8x compared to the same period of last year. Our EBITDA meanwhile grew 84% year-on-year, reaching PHP 5.7 billion. This improvement in EBITDA translated to an improvement in our EBITDA margins, which are up by 411 basis points from last year. This growth was largely driven by the strong performance of our commodity-based businesses, particularly our flour milling operation in the Philippines and our regional Agribusiness unit. Key contributors to this success include improved margins resulting from lower overall commodity prices and strategic actions done to maintain and expand our market share across key markets that we operate in across the region. On the revenue side, Aboitiz Food saw a slight dip with revenue down 3% year-on-year, totaling PHP 65.6 billion. This decline was primarily due to changes to the business model of our trading division, which resulted to a drop in volumes sold for that business. So allow me to zoom in now on revenue. Aboitiz Foods revenue, as mentioned, declined 3% year-on-year, up PHP 65.6 billion, primarily due to a slowdown in the performance of our Food & Nutrition business unit, which includes our Philippine-based operations in flour milling, livestock farming, meat production and distribution and commodity trading. In contrast, our regional Agribusiness unit remained steady, contributing about PHP 52.7 billion as lower selling prices were offset by an increase in sales volume. As of September 2024, the Food & Nutrition business unit contributed PHP 12.2 billion, which is down 11% compared to the same period last year. Revenues from this unit were dragged down by the performance of our Trading and Meats division. Now just to break that down a little bit. Our Trading division revenue declined 54% year-on-year due to a shift in strategy, which led to a conscious reduction in the volume sold for that unit. Meanwhile, the Meats division revenue declined by 7%, primarily due to our move to allocate more of our farms, live hog supply for the purpose of selling them live as this was more profitable than actually processing them for [ karka ] sales. Supply was further curtailed by our decision to stop sourcing more expensive market targets from the open market. Both of these calls reduced the volume sold through Tarlac Meatmasters under the Good Meat brand. And lastly, our Flour division saw a 1% increase in revenue, driven by a 13% rise in sales volume, complemented by margins that have remained fairly stable even as we have dropped selling prices throughout the year. Turning now to Aboitiz Foods EBITDA for the period. The EBITDA increased by 1.8x compared to the same period last year to about PHP 5.73 billion. The most notable growth came from our regional Agribusiness and Flour divisions driven largely by favorable commodity prices and growth in volumes sold in several key markets. EBITDA contribution from our Flour division grew by 244% year-on-year driven by higher operating profits, which resulted from declining wheat prices and slight growth in volume. Furthermore, improved control over operating costs and more efficient management of working capital significantly contributed to the year-on-year growth. Our regional Agribusiness unit meanwhile, experienced an EBITDA increase of 68%. This growth was primarily due again to favorable impact of drops in commodity prices and volume growth in key markets, namely Vietnam, Indonesia and the Philippines. The unit further benefited from reductions in formulation costs, rationalization of our SKUs and lower production costs, all of which enhanced our overall margins. Our Farms division achieved a 676% increase in EBITDA, which can be directly attributed to an improvement in gross profits, driven by higher live hog prices and a shift in the sales mix, as mentioned earlier, towards the more profitable live hog sales. Additionally, the repopulation of our breeder 2 facility in Tarlac, which started in March of this year, helped reduce our idle farm costs, further contributing to the noted improvement. And lastly, and in contrast, the Meats division continued to be a drag to the group's overall performance. Although losses were 8% lower than this time last year. The first half of the year presented significant challenges to this division, primarily due to the rising cost of externally sourced live hogs. Nevertheless, our efforts to streamline operations in the Meats division have gradually reduced the monthly losses before interest, taxes and depreciation, decreasing from a negative PHP 49 million position in July to negative PHP 13 million in September. Moving now to net income after tax. Aboitiz Foods closed the first 3 quarters of 2024, reporting a net income of PHP 2.33 billion by the end of September, a near eightfold increase compared to the same period of last year. While all segments contributed to the improvement year-to-date NIAT performance. The most substantial growth came from our Flour and Agribusiness livestock units, as I discussed earlier. Turning now to overall updates on strategic investments. Last month, we reached a significant milestone for Aboitiz Foods with the inauguration of our newest and most advanced feed mill in Long An Vietnam. This $45 million facility marks our largest investment in the country to date, further demonstrating our commitment to expanding our presence in Vietnam and Southeast Asia. Starting 3.8 hectares and equipped with cutting-edge Industry 4.0 technology and a modern laboratory, the feed mill can produce 300,000 metric tons of livestock Animal Nutrition feed annually. It will replace our Dong Nai Mill, and it complements our existing Binh Duong plant, bringing our total feed production capacity in Vietnam to 1.1 million metric tons. This facility will play a crucial role in addressing the growing demand for high-quality animal nutrition in Southern Vietnam. With the strategic location along our river route and access to a private port, we are able to streamline trade, reduce costs and improve supply chain efficiency, benefiting not just our customers, but also contributing to the local economy. Vietnam remains a key market for Aboitiz Foods, and this feed mill underscores our commitment to the region. It strengthens our leadership in Agribusiness and brings us closer to our vision of building a strong regional feed platform. As we continue our growth in Vietnam, we remain focused on innovation, delivering high-quality feed solutions and fostering strong partnerships with local communities. Thank you for your ongoing support and trust in Aboitiz Foods as we continue to shape the future of Agribusiness in Asia. And that's all for the Aboitiz Food Group this afternoon. Thank you.

Thank you so much, Tristan. And now for Land, I would like to call on Dave.

Okay. Good afternoon, everyone. So the first 9 months of 2024 Aboitiz Land is experiencing tempered performance relative to its targets. However, most of our key financial and operational metrics continue to surpass prior year levels, even amidst a volatile real estate market. Revenue growth was largely driven by strong sales performance in high-value projects like Priveya Hills and Seafront as well as contributions from increased site accomplishments, spot cash sales and a rise in unit sales sold with aggressive payment schemes introduced this year. Our residential book sales rose by 29% year-on-year, reaching PHP 4 billion. Aboitiz Land's total revenues as of the third quarter stand at PHP 3.1 billion, marking a 7% improvement from last year. Gross profit increased by 9% year-on-year while our core EBITDA saw a slight dip of 4%, primarily due to higher operating expenses this year related to DSME, that's direct sales and marketing expense, commissions and village setup costs. Our revenue growth for the past 9 months of 2024 was driven exclusively by our high-end projects, particularly Priveya Hills in Cebu and Seafront Residences in Batangas. This 53% year-on-year increase highlights the robust demand for these projects supported by higher sales and site accomplishments. We are optimistic about the continued growth in the upscale and luxury residential market as well as in leisure developments across the country fueled by interest from both local and overseas investors. In contrast, our mid-market segments experienced a decline in revenues year-on-year, primarily due to challenges in house construction in North Luzon and an increase in 4 fixtures. However, we remain confident in the growth potential for the remainder of the year, especially in light of recent rate cuts by the BSP. We believe Aboitiz Land is well positioned to capitalize on the growing preference for horizontal developments outside Metro Manila. Aboitiz Land closed the third quarter of 2024 with PHP 1 billion in reservation sales. a 5% decline from the same period last year. Our performance was primarily supported by our South Luzon project in Batandas, with strong contribution of The Villages at LIPA and Seafront Residences in [ one ]. Additionally, North Luzon projects led by Ajoya Cabanatuan further carry our sales during the period. Looking ahead, we are optimistic about accelerating sales momentum for the remainder of the year. Our international sales deployments in the Middle East and the United States are expected to make a measurable impact on reservation sales in Q4, coupled with attractive payment terms and targeted marketing campaigns for a ready or occupancy units, we remain confident in sustaining this momentum through year-end. In terms of geographical footprint, Aboitiz Land's assets in North Luzon, South Luzon and Cebu. These regions hold the potential to emerge as vibrant growth centers, fueled by robust infrastructure, rising urbanization and dynamic social economic activities. The promising trajectory hints a prosperous future, which bodes well for AboitizLand. With a substantial land bank in our portfolio, we remain on track to achieve our financial improved targets. Throughout the remainder of the year, we will be unlocking value by harvesting from unreleased portions of our existing projects. Part of our land bank also includes raw land that we have yet to activate. When the timing aligns with the best interest of the business in the market, we will be poised to launch them. Part of AboitizLand strategy is also to become a catalyst in maximizing the value of various real estate holdings across the Aboitiz Group, especially AIC's economic states. Our capital expenditure as of the third quarter stands at PHP 1.3 billion, representing 42% of our full year budget of PHP 3.1 billion. This strategic capital deployment reflects our ongoing project replans and development timing, allowing us to align resources effectively with market conditions. 70% of our CapEx has been directed towards house construction, while 26% has gone site development, 1% to land acquisition and the remaining 2% to other capital expenditures. We experienced a miss in our construction due to a combination of construction delays and the need for strategic replanning. Similarly, site development activities were impacted by late awarding processes. Looking ahead, we anticipate an uptick in land acquisition spending in Q4 as we position ourselves for future growth. We remain confident that these strategic adjustments will ultimately enhance our operational efficiency and better position in the market. AboitizLand is proud to announce our achievements in 2024 from various award-giving bodies. We have once again been recognized as one of the best employers in Asia reflecting our commitment to fostering a positive workplace culture. Additionally, Foressa Mountain Town, was highly commended as best nature development in the Property Guru Philippine Property Awards while the strides at LIMA was highly commended as best investment condo. We have also been honored as a circle of excellence award for technology of the Company of the Year at the Asia CEO Awards showcasing our relentless innovation with One Vecino and commitment to innovating ways of living. As AboitizLand celebrate its 30th year, it continues to thrive and innovate ways of living for Filipino families.

Thank you so much, Dave. Now for Aboitiz InfraCapital, we would like to call on Cosette.

Hi. Good afternoon, everyone, and thank you for joining us in today's briefing. For the first 9 months of the year, AIC generated a revenue contribution of PHP 3.1 billion and EBITDA of PHP 1.1 billion to AEV, respectively. This is lower compared to the previous year, largely due to economic estates revenue recognition cycle and the onetime sale and lease back to one of its locators last year. Excluding the onetime sale and leaseback, AIC's year-on-year revenues for this period are on par with the previous year. Likewise, AIC registered losses year-on-year, largely as a result of increasing financing costs from increased borrowings to fund the economic estates expansion and Unity Towers acquisitions. Apo Agua start and the ramp-up of commercial operations also contributed to the losses. In addition, we also recorded a onetime refinancing gain from Mactan-Cebu International Airport last year. Nevertheless, AIC anticipates better numbers in the fourth quarter fueled by revenue contributions from economic estates and the impact of the full acquisition of Mactan-Cebu International Airport. We will discuss these further in the succeeding slides. As of third quarter 2024, AIC's managed asset base has already reached PHP 104 billion. This indicates our operational scale and continued focus on expanding our assets. Moving on to our business sectors performance. For revenues and EBITDA, 3 of our 4 sectors, namely airports, digital infrastructure and water outpaced last year's numbers. As mentioned earlier, due to the business cycle and onetime gains from last year, Economic Estates year-on-year revenues and EBITDA and NIAT are lower. Airports revenue growth was driven by stronger passenger traffic recovery. Meanwhile, our Digital Infrastructure and Water sectors growth was fueled by Unity Digital's expansion of its tower portfolio and co-location services and Apo Agua's start of commercial operations, respectively. While MCIA registered year-on-year higher revenues and EBITDA, NIAT is lower due to the onetime refinancing gain recognized last year. We will delve into the details of our business units, operational highlights in the next slides. Going to the performance of AIC's business pillars for the economic estates, we are continuously increasing our footprint from a land area of around 1,500 hectares in 2023, we have announced expansions that will increase our footprint by almost 50%. TARI Estate, our newest development in Tarlac, will drive most of the growth with nearly 400 hectares of planned expansions. With a nationwide footprint of over 2,000 hectares, AIC's Economic Estates business is the largest in the country. For our Water sector, Apo Agua is now fully operational. Its distribution volume peaked 283 million meters of potable water per day as of September 2024. We also continued to grow our estate water distribution business along with our economic estates. For instance, the new TARI Estate will be served by AIC's TARI Water. In line with our goal of maximizing our assets our estate water business remains focused on improving operations. It has sustained a non-revenue water percentage of 5.5%, significantly better than the 20% industry standard. For MCIA, tourism growth has translated into increased passenger traffic. Domestic and international traffic are up by 9% and 18% year-on-year, respectively. Further, domestic traffic is now approximately at the pre-pandemic level. Moving forward, we expect substantial growth in our airports business with the addition of the Laguindingan International Airport. The airport is forecasted to contribute an additional 2 million passengers per annum to AIC's airports platform. For Unity, our tower company under a joint venture with Partners Group we now have approximately 2,000 service points nationwide. This is up by 60% year-on-year. This comes from the expansion of our macro tower portfolio both built and acquired and the increase in co-location tenants. As of the third quarter, we have transferred over 70% of the towers to be bought from PLDT and Globe via the sale and lease back transaction. Tenancy Ratio's also grew to 1.2x. This likewise aligns with our goal of optimizing our assets. As our different sectors have built sufficient scale, the goal is to pursue growth opportunities within their respective sectors. Notably, airport secured the PPP concession to improve and operate Laguindingan International Airport last September. Laguindingan is the first successful airport PPP project awarded by unsolicited bid under the current administration. Laguindingan currently has a capacity of 1.6 million passengers per annum depending on traffic per annum. Depending on traffic demand, potential expansions could increase capacity to over 6 million passengers over the 30-year concession period. Furthermore, AIC has officially assumed full ownership of [ AG MCAC ], the developer and operator of Mectan-Cebu International Airport. With full ownership, we look forward to assuring more improvements and in delivering exceptional passenger experience. This will help cement MCIA status as a world-class gateway. For Economic Estates, we had previously mentioned how we continue to increase our footprint. Earlier this month, we announced plans for a strategic partnership with Yuchengco Group's House of investments. We will incorporate HI's 184-hectare property as part of AIC's TARI Estate. This will have mixed-use components to complement its industrial and business offerings and enhance the overall infrastructure ecosystem. This plan is similar to what we already -- we are already implementing at LIMA estate. At LIMA Estate, we continue to have -- we currently have office towers and Biz hub, among other product offerings. LIMA Tower One is already completed and almost 50% leased. On the other hand, we have already sold 6 hectares at Biz hub at LIMA estate, and we are on track for the completion by third quarter of next year. For our Water business, we continue to develop our project pipeline with near-term growth fueled by the expansion of our economic estates. Ongoing projects include bulk water facility for MEZ2 Estate and TARI Estate. As we grow, we continually enhance the efficiency and effectiveness of our assets through a commitment to operational excellence. Earlier this year, we launched Cebu Connect, our groundbreaking passenger transfer service initiative. Cebu Connect aims to significantly streamline connecting times to only 35 minutes for domestic to domestic passengers and only 60 minutes for domestic to international passengers. We have also installed Bridge-Mounted Equipment, which helps reduce aircraft carbon footprint and potentially cut airline costs by as much as 60%. Various accessibility upgrades have also meet MCIA, an inclusive and safe space for PWB travelers. Meanwhile, Unity Digital continues to expand its reach nationwide with additional points of service. At the same time, Apo Agua sustains its drive towards operational efficiency through ongoing process enhancement and advanced filtration systems. Amid all this progress, we are proud that our AIC business units are consistently recognized for their positive public impact, innovative designs and strong commitment to sustainability. The Davao City bulk water supply project, a project between Apo Agua and the Davao City Water District was recently named the best PPP in the Philippines for 2024. U.K.-based International Finance Awards recognized the project for its innovations in engineering and project management to provide greater water quality and accessibility to the people of Davao. AIC water was also recognized at the 2024 World Business Outlook Awards for its continued commitment to developing smart and sustainable water infrastructure. Mactan-Cebu International Airport, meanwhile, has secured multiple accreditations and awards from the Airports Council International and the world-renowned Skytrax. For one, it is the first Philippine Airport to receive the prestigious Platinum Award at the Green Airports recognition 2024. This is a testament to MCIA's groundbreaking sustainability efforts. The Terminal 2 at MCIA was also awarded an equally prestigious Skytrax for rating. This reflects the terminal's high standards and commitment to delivering top-tier passenger experience through exceptional service. Finally, AIC Economic Estates was named best industrial developer for the fourth consecutive year by the Property Guru Philippines, in addition to numerous other accolades received this year. Overall, AIC Economic Estates has so far earned 7 Design awards and 5 Sustainability awards and we also expect to receive 6 PEZA Proclamations by end of this year. In conclusion, AIC is well positioned for robust full year growth across all our business platforms. We expect to end the year on a strong note, especially as we begin to recognize sales from our economic estates, our largest business unit. We actively pursue expansion opportunities within our key sectors to deliver greater value to our stakeholders, remaining sharply focused on operational excellence as a cornerstone of our performance across all business verticals. We look forward to several key milestones ahead, including accelerating sales momentum at Biz hub in LIMA Estate and TARI Estate. The successful handover of Laguindingan International Airport next year and the end of the ongoing Swiss challenge on the Bohol-Panglao International Airport PPP. Furthermore, full ownership of MCIA, the steady increase in Apo Agua's water capacity and progress of the MEZ2 bulk water and TARI Water projects will play a crucial role in achieving our goals. Unity Digital's growth will also be strengthened through the expansion of its Co-location services and Tower portfolio. Together, these milestones will propel us towards greater achievements and sustained growth. As we enter the final months of the year, our focus remains firmly on achieving our strategic objectives, maximizing synergies and advancing transformative initiatives across all our business units. That's all for AIC. Thank you.

Thank you so much, Cosette. And finally, can I call on Toto to discuss the consolidated results for Aboitiz Equity Ventures.

Thank you, Jacqui. Good afternoon, everyone. Thank you for joining us today. Now that you have already heard from our various business units, let me summarize representing AEV's consolidated results. For the first 9 months of 2024, the group beneficial EBITDA grew by 25% year-on-year, while our consolidated net income came in at PHP 18.8 billion, which was 4% higher year-on-year. Our Power business continues to account for the biggest chunk of our net income at 64%. Contributions from the Food Group, which accounted for 19% of the group's income, grew by over 8x as a result of strong performance of its Agribusiness and on our business which benefited from lower commodity prices. Meanwhile, Coca-Cola Philippines continues to deliver double-digit sales volume, outperforming our investment case and reaffirming our diversification strategy. The group's 25% year-on-year growth beneficial EBITDA was mainly driven by the strong growth of the Food Group and Aboitiz Power, as previously presented by our Food Group, they had strong growth in the Flour and Agribusiness, livestock business units due to stable commodity prices. Aboitiz Power on the other hand, continue to benefit on the research market and better margins. Fresh EBITDA contributions from Coca-Cola, Philippines, which we acquired 40% in February 2024 also contributed to the year-on-year growth. Coca-Cola Philippines continues to show growth momentum in the third quarter of 2024. The sustained double-digit revenue growth momentum in the first 9 months was mainly driven by the 13.8% year-on-year growth in volumes, which continues to be led by Coca-Cola a classic product. All channels showed double-digit volume growth in the first 9 months of 2024, but the growth in modern trade channels slightly outpaced the growth in general trade, which accounted for almost 3 quarters of total sales. Both home and away from home volumes also showed double-digit year-on-year increases as well. Revenue rose by 4.4% year-on-year in the third quarter of 2024, but for the first 9 months of the year, revenue growth was 15.1%. Continuing on the strong domestic demand story, revenue growth was mainly proposed by the double-digit volume growth in both the general and modern trade channels. By brand, Coca-Cola Classic products continued to lead growth, but Royal and Sprite are showing signs of recovery versus their weak 2023. We are pleased to report continued market share gains in this sparkling softening category. In September, market share reached 77%, the highest share on record for Coca-Cola brand since World War II. Next slide, please. Our balance sheet continues to be under leveraged and planned and opportunistic expansion. On a consolidated level, net debt to equity remains manageable at 0.8x. Parent level and gross debt marginally moved, but net debt rose to PHP 78.4 billion in September 2024 from PHP 42 billion in December 2023, after the settlement of our 40% stake in Coca-Cola Philippines in February 2024 and our participation in UnionBank's SRO in May. Even with this CapEx current level net debt to equity continues to be very manageable at 0.2x and consolidated net debt to equity of 0.75x. To summarize, we have had a solid performance this year with most business units showing good growth. We are on track with our diversification strategy. Our consumer market presence continues to expand with sustained growth momentum of Coke Philippines, the full integration of the Citibank Consumer Banking portfolio and the acquisition of Laguindingan Airport. Heading into 2025, we are confident that we can generate more revenues from our strategic expansion in Power and Infrastructure and in our consumer finance push in banking and the consumer market in general. This will benefit our shareholders and support economic development. Lastly, our balance sheet remains strong as we continue to consolidate and roll out CapEx plans across our SBUs and as we seek diversification options moving forward. That concludes our analyst briefing for the third quarter. Thank you for joining us today, and we look forward to seeing you in our full year briefing next year. Thank you.

Thank you so much, Toto. [Operator Instructions] So we will start off with the questions we actually received in advance. [Operator Instructions] So the first few questions would be for Tristan. The question goes, what is your outlook on commodity prices? How does this affect Aboitiz Foods inventory levels and hedging strategies?

Yes, tough question to answer. I think strictly like looking at the fundamentals, I would say that the outlook on commodity prices is fairly benign at this point, right? Most of the global kind of like production centers have actually come out with some fairly good-sized crops, good quality crops this year. So that's a good thing. And so I think, at least for the rest of the year, I think we're looking at a fairly like benign outlook in terms of commodity prices. I mean, obviously, we can't account for things that are out of our radar, whether you're talking about geopolitical events or extreme weather events or whatnot, right. So how does that affect our inventory position and hedging strategies? I think we continue to move forward with the same strategies that we've had in place in the past, particularly with regards to working capital management, right? So being as efficient as possible with our inventory levels to ensure that we're minimizing the costs associated with financing those positions, right? And as far as hedging goes, we employ a strategy called the neutral position strategy, which basically draws a correlation between commodity prices and our ability to pass on let's say, increases in commodity prices to the different markets that we operate in, right? They vary country per country, industry per industry, and as a result of that, we have a specific positions that we take per business per country, right? And we continue to use that to guide us in our positioning in the food group.

That's very clear. The next question still for Tristan is congratulations on the completion of your plant in Vietnam. Are you able to provide guidance on how this new plant will impact the group's feeds revenue?

So thank you. And I think the more important thing to look at actually for us, it's not revenue, but actually the bottom line, right? Keep in mind that the new facility in Long An is replacing an old facility, right, that we had in Dong Nai, that facility was very old, right? And as we were building up to the startup operations in Long An we actually started to pull volume externally, right? So in terms of volume, we actually built quite a bit of it up moving into -- or heading into the start of operations of Long An, right? So you're not going to see a big kick in terms of the increase in revenue next year, right? But this facility is definitely going to be much more efficient in terms of production and in terms of our ability to both source and bring in raw materials, logistically speaking, because it's bio river, and conversely also distribute finished goods out to customers because, again, we can make use of that river, right? So just to give you guys an idea, we were in Vietnam for the launch of the facility earlier a couple of months ago. And at that point, we were at about 70% utilization already of that mill, right? And at that level, we were already seeing better efficiency in terms of production costs versus the older mill that we were using, right? So you can imagine as we begin to add in more volume as time goes on, we'll only get more and more efficient, right? So I'm not going to give a specific number. But definitely, what we're looking out for is not necessarily a jump in revenue but better bottom line numbers due to the efficiency in terms of production associated with this platform.

That's very clear. The next question is for Dave. So quarter-on-quarter, the land bank of AboitizLand appears to have decreased significantly. Can you talk about your latest development projects?

Okay. Right now, the focus of AboitizLand really is still with its existing projects. There are 3 projects that we have in North Luzon in Cabanatua, in Tarlac and in Pampanga, 2 projects in Southern Luzon, which you see in Seafront in San Juan, Batangas, and The Villages at LIMA and LIPA. And in Cebu, we have 3 -- we have 4 ongoing projects now, AMOA, Foressa, Priveya and Persimmon. So we're pretty much -- there's still a lot of undeveloped land within those existing projects. So that's where we're really focused on. We're not really looking to launch any new projects in terms of a different location. All the projects that are being launched and will be launched will be within those existing projects since there's still a lot of land within those existing projects.

So I guess you can expect the land bank to continue to decline because you're launching more projects and monetizing those projects?