AyalaLand Logistics posts higher 9-month earnings on resilient demand

MANILA, Philippines — AyalaLand Logistics Holdings Corp. saw its earnings grow in the first nine months, as demand for industrial lots remained resilient amid prolonged coronavirus lockdowns.

In a disclosure to the Philippine Stock Exchange on Tuesday, the Ayala-run industrial real estate firm reported a net income of P402 million in the January-September period, up 117% year-on-year.

Financial results showed nine-month consolidated revenues grew 12% compared with the same period last year to P2.3 billion, something that the company considered as “signs of recovery”.

“While the current business environment still proves to be challenging, we trust that our growing diversified portfolio of assets will keep ALLHC resilient amidst the ongoing crisis,” Maria Rowena Tomeldan, company president and chief executive, said in a statement.

Spanning the Ayala subsidiary’s developments are industrial estates such as Laguna Technopark, Pampanga Technopark, Cavite Technopark, and Laguindingan Technopark.

Broken down, nine-month topline figure from industrial lot sales doubled to P1.1 billion on an annual basis because of strong demand. At the same time, revenues from the warehouse leasing segment inched up 6% on-year during the period  to P299 million as tenants start taking up AyalaLand Logistics’ new leasable space offerings that were completed last year.

However, the return to strict restrictions last August amid a Delta-fueled surge in cases weighed on AyalaLand Logistics commercial leasing operations, as the company had to extend rental assistance to tenants so they can stay afloat. Combined revenues from the company’s Tutuban Center and South Park Center dipped by 16% year-on-year to P311 million in nine months, which was offset by 100% lease-out rate of South Park Corporate Center.

As of 12:39 a.m. Tuesday, shares in AyalaLand Logistics were trading down 1.72%, bucking hefty gains in the main index.