Completion of new projects boosts ALLHC’s hopes this year

March 3, 2024 | 12:00am

MANILA, Philippines — The completion of new projects is seen boosting the financial performance of AyalaLand Logistics Holdings Corp. (ALLHC) this year after lower revenues pulled down the company’s earnings in 2023.

“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,” ALLHC president and CEO Robert Lao said.

Lao said projects underway position the company well for growth.

“Their continued progress affirms our positive outlook for 2024 and the coming years,” he said.

This year, ALLHC plans to make significant progress in land development works for its two industrial townships, namely Pampanga Technopark and Batangas Technopark.

ALLHC said both developments would integrate commercial and mixed-use components such as transport terminals, gas stations, retail and quick service restaurants, as well as an agricultural wholesale market.

To be completed this year are the ALogis Mabalacat and Naic warehouse facilities, as well as the first phase of the A-Flow data center campus with six megawatts of information technology capacity.

ALLHC’s growth will also be reinforced 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.

The company said these expansions are part of efforts to increase its 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.

The net income of ALLHC fell by 37 percent to P635 million in 2023 from P1.01 billion in 2022 as revenues dropped by 16.4 percent to P3.51 billion from P4.2 billion.

ALLHC said demand for industrial lots remained robust with lots sold reaching a record high gross value of P2.6 billion.

Booked industrial lot sales revenues, however, dropped by 34 percent to P1.55 billion on the back of ongoing development for the company’s industrial estates.

Warehouse leasing revenues saw a slight two percent improvement to P659 million despite the facilities upgrade in ALogis Calamba, which was finished and leased at the end of the second quarter of 2023.

ALLHC ended the year with 314,000 square meters of warehouse gross leasable area from deliveries in ALogis Naic.

Strong contribution from full-year operations of ALogis Artico Mandaue and higher overall occupancy, meanwhile, fueled a 46-percent surge in cold storage revenues to P176 million.

Commercial leasing contributed P872 million, up eight percent, due to improvements in the malls’ occupancies and rental rates, coupled with increased customer foot traffic and steady office tenancy.

ALLHC, a subsidiary of Ayala Land Inc., is present in seven growth areas nationwide through its industrial parks, warehouses, cold storage facilities, data centers and commercial leasing.