COVID-19 slashes ALLHC income 55% in first six months

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AyalaLand Logistics Holdings Corp. (ALLHC) reported a net income of P155 million for the first half of 2020, down 55% from P346 million in the same period of the previous year.

Revenues dropped 28% to P1.6 billion in the first six months of the year from P2.2 billion in the same period in 2019 largely due to the impact of the coronavirus disease (COVID-19) pandemic, ALLHC said in a statement.

The decline was attributed to the slowdown in the company’s retail leasing and retail electricity supply segments.

“Despite our limited operations during the community quarantine, we managed to register a positive bottomline for the first half of the year,” group president and chief executive officer Maria Rowena Tomeldan said.

“We are adapting to the changes brought about by the global pandemic, with our primary focus being ALLHC’s long-term financial sustainability and the safety and well-being of all our employees, locators, merchants, and customers,” she added.

Revenues from industrial lot sales amounted to P351 million, 33% lower compared to last year’s P522 million. Commercial revenues likewise decreased 31% to P262 million from P381 million.

Warehousing leasing revenues, on the other hand, increased 38% to P193 million from P140 million.

Costs and expenses stood at P1.327 billion, a 27% decrease from P1.825 billion in the previous year.

ALLHC’s industrial park locators and lessees of logistics facilities are operating with skeleton workforce at this time, the company noted. Tutuban Center and South Park Center are open to the public with mall merchants operating with limited capacity while adhering to health and safety guidelines.

“Buyers’ interest for our industrial lot offerings remains, and we see a growing demand for our warehouse facilities,” Tomeldan said.

ALLHC also expects its ongoing expansion projects to add 30,000 square meters of gross leasable area to its warehouse portfolio by the end of 2020.

Capital expenditures reached P339.3 million, mainly going to land development, warehouse construction and facility upgrade. For 2020, the company’s adjusted budgeted total capital expenditures is P2.16 billion.

ALLHC, a subsidiary of Ayala Land, Inc., 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.