AyalaLand Logistics’ net income drops 37%

AyalaLand Logistics Holdings Corp.’s (ALLHC), an Ayala Land Inc. subsidiary, reported that its net income dropped by 37 percent to P354 million in the first nine months of this year from P565 million in the same period last year.

In a disclosure to the Philippine Stock Exchange (PSE), ALLHC’s consolidated revenues for the first nine months also declined by 25 percent to P2.1 billion from P2.8 billion recorded in the same period in 2022.

General revenues recorded were 31 percent lower at P834 million this year, compared to P1.2 billion last year due to early-stage completion of newly launched projects. Warehouse leasing revenues saw a slight two percent dip to P510 million from P518 million last year due to lower occupancy caused by upgrading operations of the facilities in the ALogis Calamba.

Cold storage revenues increased its topline to P129 million from P89 million last year, attributed to higher occupancy in the ALogis Artico Mandaue facility. However, commercial leasing revenues this year only edged down slightly to P664 million from P665 million last year.

ALLHC noted that 51,000 square meters of properties in ALogis Calamba were tenanted to logistic companies in May and September this year, after completing their upgrades by the end of the second quarter.

“With an 88 percent lease-out rate, management expects overall occupancy to rise in the fourth quarter with tenants commencing operations,” it said.

Sales reservations were 10 percent higher at P1.4 billion compared to last year’s nine-month period due to strong domestic demand for industrial lots.

Last September, the firm launched Phase 3 of its Pampanga Technopark, which is registered with the Board of Investments (BOI) as an industrial zone. Construction is ongoing for the 15,000 square meters ALogis facilities in Naic and Mabalacat, as well as the first build-to-suit (BTS) facility in the Cavite Technopark.

The firm is also “on track to deliver its target of additional 10,000 pallet positions from the ALogis Artico projects in Santo Tomas, Batangas, and Mabalacat City, Pampanga.

“We remain focused on our strategies and plans to continue building our diversified industrial real estate portfolio. Our commitment to long term success is evident in our forthcoming project launches and expansions, which will be integral in growing our recurring revenue business and our industry presence,” said ALLHC President and CEO Robert S. Lao.

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The article was originally published in Manila Bulletin and written by Khriscielle Yalao.