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AyalaLand Logistics’ first-quarter 2023 consolidated revenue was P702 million and net income was P178 million, 18.8% and 9.5% lower, respectively, than in Q1 2022
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ALLHC expects accelerated conversion of reservations and booking of industrial lot sales by the second quarter
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The firm’s warehouse spaces and cold storage remain robust as business activity increases
AyalaLand Logistics Holdings Corp. (ALLHC) first-quarter net income dropped 9.5% to P178 million in the first quarter from P197 million year-on-year.
Consolidated revenues of P702 million also declined 18.8% from P864 million.
Despite a 24% decrease to P242 million in revenue from industrial lot sales, demand remains robust with greater total reservations this quarter, the company said in a statement.
“Our industrial lot sales business saw higher reservations this quarter versus a year ago. We expect accelerated conversion of reservations and booking of industrial lot sales by the second quarter of the year,” ALLHC president and chief executive Jose Emmanuel Jalandoni said.
Revenue from warehouse leasing hit P187 million, a decline from last year due to ongoing upgrade of ALogis Calamba, which should be fully completed by May 2023 and command higher rental rates.
Cold storage ended the quarter with revenue of P40 million, up 44% with the addition of ALogis Artico Mandaue to the portfolio. Commercial leasing revenue increased 12% to P230 million on 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. He said ALLHC’s 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 said it is expanding its real estate logistics portfolio.
In March, ALLHC added to its cold storage portfolio a new cold storage facility in Mandaue, Cebu. This April, the company broke ground for its fifth industrial estate, Batangas Technopark in Padre Garcia. The property is envisioned to be an agro-industrial hub with warehouse and cold storage facilities, a transport terminal and an agricultural wholesale market.
RELATED READ: AyalaLand Logistics breaks ground for Batangas Technopark
ALLHC earlier said 2023 marks the continuation of its mission of transforming places into dynamic centers across the country, developing world-class industrial parks that are hubs of convergence and business activity.
Aside from Batangas Technopark, ALLHC is preparing to launch Pampanga Technopark in Mabalacat – an estate envisioned as an agro-industrial hub with a current gross land area of 270 hectares.
Like Batangas Technopark, it will eventually rise as a mixed-use development to host ALogis and ALogis Artico facilities, as well as amenities such as an agricultural wholesale market, a public transport terminal, and more.
A subsidiary of Ayala Land Inc., ALLHC has principal business interests in holding companies, commercial leasing, industrial lot sales and development, and retail electricity supply. Its subsidiaries include Laguna Technopark Inc.; Unity Realty Development Corp.; Orion Land Inc.; Tutuban Properties Inc.; LCI Commercial Ventures Inc.; and FLT Prime Insurance Corp.
