AyalaLand Logistics Holdings Corp. (ALLHC) saw its first-quarter profit collapse 92 percent to P5 million from P66 million a year ago, dragged down by weak industrial lot sales and rising costs tied to its expansion push.

In a regulatory filing on Monday, the Ayala Land, Inc. (ALI) subsidiary said the sharp drop reflected lower industrial lot sales and higher depreciation and financing costs related to prior expansions. Consolidated revenues stood at P725 million.

Industrial lot sales brought in P165 million, down 58 percent from P394 million last year, as projects remain in early stages of completion. 

Still, the company pointed to underlying demand, with sales reservations jumping 46 percent year-on-year to P517 million. These are expected to be booked within the year as projects progress and payment requirements are met. 

To usher in growth, ALLHC said it continues to actively manage inventory, timing future launches in line with market conditions.

“Amid a more cautious market environment, we continue to see healthy interest in our Technopark development, reflected in improved pre-sales,” ALLHC President and CEO Robert S. Lao said. 

“While we saw tempered earnings in the near term, our leasing assets continue to provide stability as we maintain disciplined execution across the portfolio, alongside a more measured approach to capital deployment,” he added. 

Notably, leasing provided a brighter spot, with revenues climbing 19 percent to P551 million on the back of improving occupancy, particularly in cold storage assets that are now stabilizing after recent completions and acquisitions.

Warehouse leasing revenues rose 7 percent to P202 million, supported by additional capacity delivered in 2025 and better occupancy. Cold storage revenues surged 157 percent to P118 million as utilization ramped up, while commercial leasing held steady at P231 million.