AyalaLand Logistics Holdings Corporation (ALLHC), a subsidiary of Ayala Land, Inc. (ALI), reported a 9.6 percent decline in net income to P178 million in the first quarter of 2023 from the P197 million earned in the same period of 2022.
In a disclosure to the Philippine Stock Exchange, the firm said its consolidated revenues went down by 19 percent to P702 million in the first quarter of 2023 from P864 million in the comparative period last year.
While ALLHC posted revenues of P242 million for industrial lot sales, 24 percent lower versus the same period last year, it aid demand remains robust with higher total reservations.
“Our industrial lot sales business saw higher reservations this quarter versus a year ago. We expect accelerated conversion of reservations and booking industrial lot sales by the second quarter of the year,” said ALLHC President and CEO Jose Emmanuel H. Jalandoni.
Warehouse leasing reached P187 million in revenues, a decline from last year, due to ongoing upgrading of ALogis Calamba, which is expected to be fully completed by May 2023 and command higher rental rates.
Meanwhile, cold storage ended the quarter with P40 million in revenues, a 44 percent increase with the addition of ALogis Artico Mandaue in the portfolio.
Commercial leasing revenues increased by 12 percent to P230 million on account of improved occupancy and normalized mall rental rates.
Jalandoni said demand for ALLHC warehouse spaces and cold storage continue to be robust given increasing business activity post-pandemic.
ALLHC tenant base is expanding with more third-party logistics providers, e-commerce locators, food manufacturers, building material manufacturers, and retailers, both local and foreign.
Given increasing demand, ALLHC is expanding its real estate logistics portfolio. Last March, ALLHC broke ground its fourth cold storage facility in Santo Tomas, Batangas.
Furthermore, ALLHC launched its fifth industrial estate, the Batangas Technopark in Padre Garcia. The Batangas Technopark is envisioned to be an agro-industrial hub with warehouse and cold storage facilities.
It will also have a transport terminal and a “bagsakan” or agricultural wholesale market. All of these facilities will contribute to improving the overall supply chain in the region.
“We continue to work towards our goal of building a network of industrial estates all over the country. As the country grows, demand for modern grade industrial estates, warehouse and cold storage facilities will continue to grow. This will promote countryside development and employment opportunities outside of urban areas,” added Jalandoni.
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The article was originally published in Manila Bulletin and written by James A. Loyola
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