AyalaLand Logistics 9-month net profit takes hit from weak industrial lot sales

AyalaLand Logistics Holdings Corp. said Tuesday net income in the nine months to September plunged 37 percent from the year-earlier period, hurt by lower revenue from industrial lot sales of Ayala Land Inc.’s industrial estate developer and softer demand for leasing of warehouse and commercial spaces.

AyalaLand Logistics said net income dropped to P354 million from P562.3 million in the year-earlier as total revenue fell to P2.1 billion from P2.75 billion in the same period of 2022.

The company said that while sales reservation for industrial lots still rose 10 percent to P1.4 billion, sales revenue still plunged 31 percent to P834 million due to early-stage completion of newly-launched projects. Warehousing revenue was down 2 percent to P510 million due to lower average occupancy while commercial leasing revenue was flat at P664 million, it said.

Cold storage revenue was up 41 percent to P129 million.

AyalaLand Logistics president and chief executive officer Robert Lao remains optimistic for the prospects of the company, especially with the launch of new projects in the coming quarters, including the third phase of the Pampanga Industrial Technopark township that is being registered with the Board of Investments to seek fiscal incentives. The project will complement another project in Pampanga and one in Batangas to deliver on a target of an additional a 10,000  pallet position.

The company is also building its first build-to-suit facility for a client in Cavite.

“We remain focused on our strategies and plans to continue building our diversified industrial real estate portion,” said Lao in a statement. “Our commitment to long-term success is evident in our forthcoming expansions, which will be integral in growing our recurring revenue business and our industry presence,” he added.