ALLHC delivers strong earnings growth in H1

MANILA, Philippines — Strong revenues powered the earnings of AyalaLand Logistics Holdings Corp. (ALLHC) to a 22-percent expansion in the first half.

The listed industrial real estate arm of Ayala Land Inc. reported a net income of P413 million in the first semester, up from the previous year’s P339 million.

This was driven by robust revenues, which surged by 73 percent to P2.6 billion from P1.5 billion in the first half of 2023.

With healthy demand from locators and higher completion rates for developing industrial estates, revenues from the sale of industrial lots stood at P1.7 billion.

Meanwhile, improvement in overall occupancy coupled with an increase in leasable area boosted warehouse leasing revenues by 14 percent to P379 million during the period.

The company’s cold storage revenues, likewise, grew by eight percent to P92 million due to contributions from the addition of ALogis Artico Santo Tomas and higher average rent.

Revenues from commercial leasing also registered a five-percent improvement to P466 million on the back of improved mall occupancies.

ALLHC president and CEO Robert Lao said the company’s first half performance exhibits its focus on achieving operational improvements across all core businesses this year.

“Alongside robust market activity, we believe our efforts to grow our asset portfolio and further enhance our industrial leasing segments will continue to position ALLHC well for growth for the remainder of 2024,” Lao said.

Last May, ALLHC delivered the 5,000-pallet position ALogis Artico Santo Tomas, its fourth cold storage facility.

The company completed last month its first build-to-suit project, a 15,000-square meter facility located within Cavite Technopark.

ALLHC during the second quarter also launched the second phase of its warehouse facilities in Pampanga Technopark, which will add 18,000 square meters of gross leasable area in the warehouse inventory upon delivery.

Also within Pampanga Technopark are projects that ALLHC expects to complete this third quarter.

ALLHC said the first phase of ALogis Mabalacat and the ALogis Artico Mabalacat cold storage will contribute 7,700 square meters of warehouse gross leasable area and 5,000 cold pallet positions, respectively.

The company expects to break ground this quarter for its sixth and seventh cold storage facilities, ALogis Artico Santa Rosa in Laguna and ALogis Artico Consolacion in Cebu.

The two facilities will add 11,000 pallet positions to ALLHC’s expanding cold storage portfolio.