AyalaLand Logistics Holdings Corp. (ALLHC) sharply improved its earnings in the third quarter, with net income of P62 million helping narrow its nine-month profit decline to 9 percent as industrial lot sales gained traction and cold storage operations expanded.
The logistics property developer reported P73 million in net income for January to September, down 9 percent year on year, on consolidated revenues of P2.5 billion. The result marked a significant recovery from the 90 percent earnings plunge recorded in the first half, although the latest figures show that much of the improvement came in the final three months of the reporting period.
Third-quarter earnings accounted for nearly 85 percent of the nine-month profit, underscoring both the strength of the recent recovery and the challenge of sustaining it through yearend.
Cold storage was the fastest-growing segment among its leasing businesses, with revenues surging 76 percent to P355 million. Higher facility utilization and contributions from Artico Iloilo and Artico Urdaneta supported the expansion.
Total leasing revenues rose 9 percent to P1.6 billion, providing a recurring income base as the company continued to monetize its industrial property portfolio.
“Navigating a challenging market backdrop, the sequential improvement in our third-quarter net income reflects strong progress in securing key tenants across our leasing business and capitalizing on continued demand for our industrial lots,” ALLHC president and chief executive officer Robert S. Lao said.
Industrial lot sales generated P903 million in recognized revenues, while reservations climbed 23 percent to P1.3 billion. The increase in reservations points to potential future revenues, although actual recognition will depend on the completion of the necessary sales and development milestones.
Dry warehouse leasing revenues grew 5 percent to P585 million, supported by improved occupancy and stable operations across its nationwide portfolio.
Commercial leasing remained a weak spot, with revenues declining 7 percent to P646 million amid softer retail conditions, tempering gains from the company’s industrial and logistics-related businesses.
Lao said ALLHC would focus on stabilizing and strengthening its overall portfolio, as it seeks to build on the third-quarter recovery and improve earnings consistency.
