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Notes to Consolidated Financial Statements - 61 Market Data Approach involves the comparison of the land to those that are more or less located within the vicinity of the appraised property and are subject of recent sales and offerings. Adjustments were made to arrive at the market value by considering the location, size, shape, utility, desirability and time element. To determine the market value of the condominium units, the estimated net annual income of each comparable listing was computed and then capitalized through Direct Capitalization Method. The assumed market value was then arrived and adjustments were made to determine the estimated market value of the subject units. Sensitivity Analysis The following factors were considered in determining the Market Value of the subject property: - location/neighborhood - the subject property is a commercial/residential - grid analysis (quantitative market value adjustments) - highest and best use (commercial and residential building) Significant increases (decreases) in NOI, capitalization rate and value adjustments would result in a significantly higher (lower) fair value measurement. Significant increases (decreases) in value adjustments would result in a lower (higher) fair value measurement. Grid analysis is the process of listing the comparables, properties that was recently sold or available for sales which are substantially equivalent in terms of characteristics and are situated in a similar market as the subject property, and effect some adjustments considering the factors affecting land value such as the location, size or area, access and zoning. In the absence or lack of hard sales data, listings and offerings may also be considered. The comparison is based on such factors as location, size, shape, utility, desirability, and time element. The value of the improvement is just a mere component of the property being utilized for overseeing. Cost Approach Project Alphaland Makati Place Alphaland Tower

Class of Property Improvement Improvement

Significant Unobservable Inputs Replacement cost per square meter Replacement cost per square meter

Range 2013 =30,000P P =55,000 –

2012 P30,000= P =50,000 =38,000 P

Replacement cost per square meter is the estimated cost per square meter to replace or reproduce the investment property taking into account the location, size, shape, utility, desirability and time element. Cost Approach involves the estimate of the reproduction cost of the improvements based on prevailing cost of labor, materials, contractor’s fee and other costs necessary to build the improvements. Depreciation brought about by physical wear and tear, functional obsolescence and economic obsolescence are deducted to arrive at the market value of improvements. Sensitivity Analysis Change of value in the improvement is attributed to the progress report completion of the building. 106

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