RLC allocates P16B for 2017 spending | Inquirer Business
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RLC allocates P16B for 2017 spending

/ 12:05 AM January 16, 2017

Gokongwei-led Robinsons Land Corp. (RLC) has earmarked P16 billion for domestic capital expenditures this year, mostly to expand its source of recurring earnings like shopping malls, offices and hotels.

The budget for capital outlays this year will be funded through internally generated cash from operations and borrowings, RLC said in a regulatory filing.

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“Approximately 53 percent will be allocated for the development of new and expansion of existing malls, offices and hotels, 25 percent is expected to be incurred for the completion of ongoing residential property developments while the remaining 22 percent will be spent on replenishing the landbank,” the company said.

The capital spending planned for this year is on a par with the actual outlays made in fiscal year ending September 2016.

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Capital expenditure incurred for fiscal years 2016, 2015 and 2014 amounted to P26.7 billion, P16.8 billion and P14.1 billion, respectively, representing about 118 percent, 85 percent and 83 percent of revenues in those years.

For the October to December 2016 period, the first quarter in fiscal year 2017, RLC has allotted around P4 billion for capital expenditures: 65 percent was to be spent on the construction and expansion of malls, offices and hotels, 26 percent for residential property developments and the remaining 9 percent on land acquisitions.

For fiscal year ending September 2016, RLC booked a net income of P6.15 billion, up by 7.9 percent compared to the previous year. Gross revenues rose by 14.2 percent to P22.51 billion while cash flow as measured by earnings before interest, taxes, depreciation and amortization posted a 12.5 percent growth to P12.02 billion.

The commercial centers division contributed P9.96 billion in real estate revenues for the year, rising by 9.4 percent. Rental revenues increased due to opening of new malls in Cebu City, Tagum (Davao), General Trias (Cavite) and Jaro (Iloilo). The rise of the Antique mall and the expansions of the Novaliches and Ilocos malls also contributed to the growth.

Cinema revenues increased due to more blockbuster films released alongside the operation of new cinemas in new malls.

Revenues of the office buildings division grew by 30 percent to P2.91 billion, mainly attributable to new office developments completed in 2014 and 2015, namely Cyberscape Alpha, Cyberscape Beta and Tera Tower. System-wide occupancy rate ended at 96 percent as of Sept. 30, 2016.

The residential division contributed P7.83 billion in revenues for the year, marking an increase of 18.2 percent. The hotels division, meanwhile, registered gross revenues of P1.81 billion versus the previous year’s P1.75 billion.

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TAGS: Budget, Business, domestic capital expenditures, RLC, Robinsons Land Corp, spending
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