Robinsons Land nets P8.23B

Robinsons Land Corp. president and chief executive officer Frederick Go. (File photo)

MANILA, Philippines–The net profit of the Gokongwei-led Robinsons Land Corp. (RLC) grew last year by 40 percent to P8.23 billion as a surge in the residential development business and sale of institutional lots added to its steady stream of rental earnings.

RLC president and chief executive officer Frederick Go said: “2018 has been a banner year for Robinsons Land as both our investment and development portfolios saw robust earnings growths driven by key business strategic initiatives and strong demand from our customers and buyers.”

Consolidated revenues grew by 31 percent to P29.44 billion for the year while overall cash flow as measured by earnings before interest, taxes, depreciation and amortization (EBITDA) grew by 30 percent to P16.2 billion.

RLC’s investment portfolio grew business by 14 percent to P18.16 billion, driven by malls and offices divisions.

The development portfolio, on the other hand, surged by 72 percent to reach revenues of P11.28 billion due to higher revenues recognized from the sale of residential units coupled with the sale of institutional lots to joint venture companies with the international property developers.

RLC’s residential division grew revenues by 33 percent to P8.69 billion, driven by new project launches and robust demand from both domestic and overseas buyers. Sale of commercial lots contributed P2.59 billion in revenues.

On the investment portfolio, the shopping mall division grew revenues by 11 percent to P11.94 billion, accounting for 41 percent of total revenues.  This was mainly due to strong rental income and the openings of four new malls namely: Robinsons Place Ormoc, Robinsons Place Pavia, Robinsons Place Tuguegarao and Robinsons Place Valencia in Bukidnon.

Meanwhile, RLC Company is undertaking a massive buildup of its hotels and resorts division “to compete in the very challenging and crowded segment.”  Revenues last year rose by a modest 5 percent to P1.98 billion.

“The division was saddled by the weaker sales of some of its properties, pre-operating expenses of new and upcoming hotels, as well as expected higher overhead in the head office,” the disclosure said.

Last year, RLC’s warehouse business turned over its first logistic facility located in Sucat, Muntinlupa with a total leasable space of 33,000 square meters, contributing P135 million in revenues. /jpv