RLC net profit grows to P1.84B in Q1 2019

MANILA, Philippines — Gokongwei-led property developer Robinsons Land Corp. (RLC) saw a 19-percent year-on-year growth in first quarter net profit amounting to P1.84 billion, driven by its shopping mall, office and hotel businesses.

RLC’s consolidated revenues for the period went up by 7 percent year-on-year to P6.78 billion while overall cash flow as measured by earnings before interest, taxes, depreciation and amortization (EBITDA) grew by 12 percent to P3.75 billion. 

The sustained growth was driven by the investment portfolio, which rose by 13 percent to P4.81 billion, led by the office buildings division with the highest revenue growth of 30 percent to reach P1.12 billion.

The malls division – which accounts for 46 percent of first quarter consolidated revenues – has a stable revenue growth of 9 percent amounting to P3.14 billion.

“Robinsons Land continues to post strong earnings from organic growth as well as from our expansion programs. We look forward with much enthusiasm to the improvement of our performance in the coming months,” RLC president and chief executive officer Frederick Go said in a press statement.

On the mall business, RLC reported strong rental income all across the existing malls coupled with the contributions from the four new malls opened last year namely, Robinsons Place Ormoc, Robinsons Place Pavia, Robinsons Place Tuguegarao, and Robinsons Place Valencia.

Excluding the impact of new malls, same mall rental growth was at 7 percent. Total mall leasable space stood at 1.5 million square meters, occupied by over 9,000 retailers. 

Meanwhile, RLC’s residential division saw a 7-percent year-on-year decline in first quarter revenues amounting to P1.97 billion, mainly attributed to the timing of revenue recognition. However, EBITDA increased by 2 percent to P605 million during the period. 

As a measure of future growth, RLC’s sales take-up was steady at P3.7 billion for the first quarter. In the coming months, the group expects to launch phase 2 of Sapphire Bloc, the third tower of Galleria Residences Cebu, as well as projects Cirrus and Sync Communities in Pasig City. 

RLC also reported that its overseas venture, the Chengdu Ban Bien Jie project in China, has seen significant progress in a short period of time. Pre-selling has commenced for the residential high-rise apartments of phase 1. To date, all 795 condominiums units have been booked. The company expects to recognize revenues from the Chengdu project this year.