ALLHC posts net income of P339M in first half of 2023

AyalaLand Logistics Holdings Corp. (ALLHC), an Ayala Land Inc. (ALI) subsidiary, registered consolidated revenues of P1.5 billion and a net income of P339 million for the first six months of 2023.

 

Sales from industrial lots contributed P675 million in revenues, a 3% increase for P657 million versus last year. ALLHC management expects to convert reserved lots to actual bookings over the next 6 months.

 

Warehouse leasing posted P331 million in revenues, a 9% decline versus the previous year, on account of the facilities upgrade of ALogis Calamba, which was delivered and leased out at the end of the second quarter. Overall occupancy is expected to rise within the second half of the year as tenants commence with their operations.

 

Meanwhile, cold storage revenues grew 50% to P85 million from P57 million the same period last year with the addition of ALogis Artico’s third facility in its portfolio.

 

Commercial leasing grew its topline by 3% to P443 million from P429 million due to improved mall occupancy and rental rates.

 

The company’s balance sheet remains stable with a net gearing of 0.75:1.

 

“In the first half of the year, the company’s performance remained sound. We remain positive that our diversified real estate portfolio, alongside our up-and-coming projects in the pipeline, will propel the business forward,” shared ALLHC Chief Operating Officer Patrick C. Avila.

 

In April, ALLHC broke ground for its first build-to-suit (BTS) facility. The 15,000-sqm facility in Cavite Technopark will cater to a local retailer under a long-term lease contract. As part of increasing its recurring revenue business, ALLHC intends to aggressively expand its BTS business. Likewise, ALLHC successfully tenanted its 18,000-sqm facility in Calamba last May to a logistics firm that services the demand from a leading automotive company.

 

In June, ALLHC cemented its Central Luzon presence with Pampanga Technopark. The development is the biggest ALLHC industrial township development to date and will include a bagsakan or agricultural wholesale market with all the support facilities such as cold storage, dry warehouse facilities, and public transport terminal.

 

“We will introduce a modern food terminal, and this will be supported by our cold storage and dry warehouse facilities. Farmers from Northern Luzon and Central Luzon can bring their produce, and these can be stored and preserved with the proper facilities. We hope this would help all farmers and our supply chain,” added Mr. Avila.

 

Similar to Pampanga Technopark, Batangas Technopark will likewise become an industrial township which solidifies ALLHC’s presence in the CALABARZON region. Launched last April, it will also include an agro-industrial area complemented by dry warehouse and cold storage facilities, a bagsakan (agricultural wholesale market), and public transport terminal.

 

The A-FLOW Data Center project remains on track as development works are ongoing. The project’s initial roll-out of 6MW is expected to be ready for service by the end of 2024.