AyalaLand Logistics posts 37% drop in 2023 income

0
198
ALogis Artico Sto. Tomas. Photo from ALLHC.
  • AyalaLand Logistics Holdings Corp. reported a 37% year-on-year drop in 2023 net income to P635 million
  • Revenue in 2023 was also down 16.4% to P3.51 billion, 16.4% lower than P4.20 billion in 2022
  • Ongoing development works for industrial estates cut revenue from booked industrial lot sales by 34% to P1.55 billion
  • Increases in revenue for warehouse leasing, cold storage and commercial leasing were recorded
  • ALLHC said demand for industrial lots remained robust in 2023 with lots sold reaching a total gross value of P2.6 billion, a record high for the company

AyalaLand Logistics Holdings Corp. (ALLHC) reported a 37% drop in 2023 net income to P635 million from P1.01 billion in 2022.

Consolidated revenues reached P3.51 billion, 16.4% lower than P4.20 billion in 2022.

Ongoing development works for industrial estates cut revenue from booked industrial lot sales by 34% to P1.55 billion.

Still, ALLHC in a statement said demand for industrial lots remained robust in 2023 with lots sold reaching a total gross value of P2.6 billion, a record high for the company.

In April 2023, the company launched its fifth industrial estate, the 55-hectare Batangas Technopark in Padre Garcia, Batangas, which ALLHC said has been well-received by buyers and investors.

Warehouse leasing revenues posted a 2% growth to P659 million despite the facilities upgrade in ALogis Calamba in Laguna, which was completed and leased at the end of the second quarter of 2023.

Also in the second quarter, ALLHC commenced construction for ALogis Mabalacat in Pampanga Technopark and its first build-to-suit facility located in Cavite Technopark, which will add 23,000 square meters of warehouse gross leasable area (GLA) at full completion.

The company ended the year with a total 314,000 square meters of warehouse GLA from deliveries in ALogis Naic in Cavite.

Revenue from cold storage accelerated by 46% year-on-year to P176 million mainly driven by contribution from full year operations of ALogis Artico Mandaue in Cebu and higher overall occupancy.

In the first half of 2023, ALLHC began expansions with construction underway for ALogis Artico Santo Tomas in Batangas and ALogis Artico Mabalacat in Pampanga, which will add 10,000 pallet positions in their portfolio upon delivery.

Commercial leasing revenues recorded an 8% growth to P872 million from improvements in the malls’ occupancies and rental rates, paired with increased customer foot traffic and steady office tenancy.

“In 2023, focus was placed on laying the groundwork for our ongoing and upcoming endeavors. We maintain a strong belief in the potential of our ongoing projects in our pipeline. The projects underway position us well for growth, and their continued progress affirms our positive outlook for 2024 and the coming years,” said ALLHC president and chief executive officer Robert Lao.

For this year, ALLHC company intends to make significant progress in land development works for its two industrial townships, namely Pampanga Technopark and Batangas Technopark. Anchored by the industrial parks, both developments will integrate commercial and mixed-use components such as transport terminals, gas stations, retail and quick service restaurants, and a bagsakan or agricultural wholesale market.

Other projects on track to be finished this year are the ALogis Mabalacat and Naic warehouse facilities, and the first phase of the A-FLOW data center campus with 6-megawatt of IT capacity.

Moreover, ALLHC will further augment growth with the construction of a warehouse facility in Metro Manila, a cold storage facility in Luzon, and two more in the Visayas and Mindanao regions within the year. All these are efforts of increasing the company’s recurring revenue businesses.

“Our future deliveries enable us to follow through on our commitment to expand not just our network of industrial properties nationwide but also our industry presence,” Lao said.

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.