AyalaLand Logistics Holdings Corp. (ALLHC), the subsidiary of Ayala Land Inc. (ALI) focused on the development of industrial properties, suffered a 37 percent drop in net income to P635 billion last year from the P1.01 billion earned in 20222.

In a disclosure to the Philippine Stock Exchange (PSE), the firm said it registered a 16.6 percent decline in consolidated revenues to P3.51 billion in 2023 from the P4.21 billion posted in the previous year. 

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.

“However, booked industrial lot sales revenues amounted to P1.55 billion, a 34 percent dip from the year prior, on account of ongoing development works for our industrial estates,” the company said. 

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

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

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 sq.m. of warehouse GLA from deliveries in ALogis Naic. 

Meanwhile, cold storage revenues accelerated by 46 percent year-on-year to P176 million mainly driven by contribution from full year operations of ALogis Artico Mandaue 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 the portfolio upon delivery. 

Commercial leasing recorded an eight percent growth to P872 million from improvements in the malls' occupancy 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," said ALLHC President and CEO Robert S. Lao. 

He added that “the projects underway position us well for growth, and their continued progress affirms our positive outlook for 2024 and the coming years.” 

For the year 2024, ALLHC 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 6MW 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," said Lao.