Philippine Property Beneficiary of a risk reset; reiterate OW on ALI, RLC, MEG

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Philippine Property Beneficiary of a risk reset; reiterate OW on ALI, RLC, MEG

J P M O R G A N Asia Pacific Equity Research

15 June 2026

Philippine Property

Beneficiary of a risk reset; reiterate OW on ALI, RLC,

MEG

Rising rates and weak growth sentiment drove Philippine Property’s 22% YTD Property

ACunderperformance vs. the PSEi. The sector now trades at a trough 73% NAV discount Jelline Gaza, CFA

and screens as a top beneficiary of a risk-on rotation as oil prices and geopolitical (63-2) 8878-1131

tensions ease. While we caution that 2026E NIAT could still see a lingering impact jelline.gaza@jpmchase.com

from the oil price spike disruption, a re-rating could transpire on risk-on sentiment and Jeanette Yutan

as investors start to look into 2027E recovery amid a low-base and election spending (63-2) 8878-1188

boost. Residential demand tracks sentiment and GDP growth closely (Figure 4), with jeanette.g.yutan@jpmorgan.com

J.P. Morgan Securities Philippines, Inc.

the upscale/luxury set to recover first given buyers' deep pockets and lower reliance

on mortgage financing. We believe ALI is the best macro turnaround proxy, with re-

rating tied to a risk premia reset and pre-sales recovery into 2027E; its record-low 86% Please see our latest notes:

NAV discount and 0.5x 2027E P/B presents an attractive entry into the country’s

RLC: Cash flow builds, REIT recycles,premier real estate developer. We like RLC for its positive FCF and minority cash

dividends compound; upgrade to OWaccess through DPS growth (6.6% potential 2027E yield) funded by leasing growth.

(May-26)We favor MEG for its astute residential repositioning into high-growth provincial

markets, an attractive 5.7% 2027E yield, stable office cash flows and recent REIT ALI: Patience required for a multi-cycle

placements.