ALLHC profits up 10% despite lower mall revenues

Published May 8, 2021, 6:30 AM

by James A. Loyola

AyalaLand Logistics Holdings Corp. (ALLHC) posted a 10 percent improvement in net income to P165 million in the first quarter of 2021, driven by tightened spending and cost-management initiatives amidst the challenging environment.

In a disclosure to the Philippine Stock Exchange, the firm said consolidated revenues amounted to P964 million, 19.67 percent lower than in the same period last year.

Revenues from the sale of industrial lots registered at P383 million, 9 percent higher compared to last year’s P351 million attributed to lot sales at Pampanga Technopark, reflecting healthy demand from local locators.

Improvement in rentals and recoveries helped boost warehouse leasing revenues, growing 13 percent to P123 million from P109 million.

Meanwhile, revenues from commercial leasing registered at P125 million, down by 33 percent from P186 million.

Operations of South Park Corporate Center remained stable, however, this was tempered by the limited operations of South Park mall and Tutuban Center. 

“We anticipate that our operations across our business lines will overcome the challenging business environment. Our diversified portfolio and our continuing efforts to build up our assets puts ALLHC in a solid position to steer its course towards recovery and long-term growth,” said ALLHC President and CEO Maria Rowena M. Torneldan. 

ALLHC management announced in April that despite the ongoing challenges brought about by the pandemic, it remains committed in building its national footprint by growing its warehouse gross leasable area (GLA) to 500,000 square meters (sq.m.), establishing presence in 10 key locations across the country and creating new business platforms by the year 2025. 

Last January, ALLHC broke ground for the second phase of ALogis Naic at Cavite Technopark to expand its GLA by 16,000 sq.m. upon completion in December 2021.

In March, an additional 6,000 sq.m. of GLA in ALogis Calamba was completed, bringing up the ALogis portfolio to 213,000 sq.m. of warehouse GLA.

Moreover, in efforts to further diversify its product offerings, ALLHC acquired a 4,000 pallet position cold storage facility located in Laguna Technopark. This marks ALLHC’s foray into the cold logistics market, branding the cold storage segment in its portfolio as “ALogis Artico”. 

All expansion efforts are in line with its vision to be the leading real estate logistics and industrial estate developer in the Philippines.