Leading industrial estate developer AyalaLand Logistics Holdings Corp. (ALLHC) defied the downturn in the overall property market in the first quarter on the back of higher industrial lot sales and warehouse leasing revenues.ALLHC chalked up P150 million in net profit in the first three months, up 1.2 percent year-on-year, driven by a 21-percent growth in revenues to P1.2 billion.
The company remains optimistic about its business and is gearing up for the gradual resumption of operations.
“Our efforts to build up our assets in 2019 with additional industrial estates and logistics facilities have been notable in delivering these first quarter results. We believe that continuously growing and enhancing our assets will effectively bring the company forward,” ALLHC president and chief executive officer Maria Rowena Tomeldan said in disclosure to the Philippine Stock Exchange on Monday.Property experts believe that the industrial/warehousing will be among the real estate sub-segments that will fare well despite the challenging economic environment caused by the coronavirus pandemic.
Revenue growth was driven by industrial lot sales and warehouse leasing, making up for flat earnings from commercial leasing due to the closure of Tutuban Center and South Park Center in mid-March. As of end-March 2020, ALLHC had a landbank of 267 hectares.
Rental revenues from warehouse leasing rose by 45 percent year-on-year to P109.2 million. The company had a total gross leasable area (GLA) of 175,000 square meters as of end-March, up by 29 percent year-on-year. Lease-out rate was higher at 95 percent from 86 percent a year ago.
On the other hand, revenues from commercial leasing were flat at P185.7 million, compared to revenues of P181 million in the first quarter of 2019 due to the impact of the lockdown that started in mid-March 2020. INQ