Ayala’s logistics unit expects 4.5% drop in revenues

From Manila Standard

AyalaLand Logistics Holdings Corp., a unit of Ayala Land Inc., expects consolidated revenues to decline by as much as 4.5 percent this year due to the new coronavirus (COVID-19) pandemic.

ALLHC president Rowena Tomeldan said during the annual stockholders’ meeting conducted via lifestream Monday the lower consolidated revenues would be due mainly to the closure of retail malls during the implementation of the Luzon-wide enhanced community quarantine.

Tomeldan, however, is upbeat the sale of industrial lots will temper the expected drop in revenues.

Due to Luzon-wide enhance community quarantine, ALLHC’s Tutuban Center has been closed, except for tenants offering primary services like supermarket, banks, drug stores and payment centers.

Tomeldan said operations may quickly stabilize once the quarantine is lifted, given Tutuban’s prime location and its historical customer traffic. Tomeldan said only five retail merchants in South Park Center in Muntinlupa City were operating, while two office locators continued operations with a skeletal workforce.

“With South Park’s trade mix, operations may immediately resume upon lifting of the ECQ,” she said.

Tomeldan cited medium-term lease contracts with the locators that assures continuity of the warehouse business.

ALLHC said demand for industrial parks for industries engaged in food, medical supplies and logistics remains.

Tomeldan said the company would continue to strive to do what it can to deliver positive performance in 2020 despite uncertainties and the challenging business environment.

ALLHC’s net income grew 15 percent in 2019 to P641 million, while revenues reached P5.3 billion, up 58.4 percent from the 2018 level. Strong performances in the sale of industrial lots and in warehouse and commercial leasing operations drove the growth.

The company ended 2019 with 170,000 square meters of warehouse and 84,000 sq. m. of commercial of gross leasable areas.

ALLHC in 2019 formally launched the 105-hectare Laguindingan Technopark in Misamis Oriental. It acquired a 192-hectare 192-hectare land parcel in Mabalacat City, Pampanga, which it will for the development of the Pampanga Technopark.

Share price of ALLHC on Monday fell 0.7 percent to P1.49. — Jenniffer B. Austria