Rockwell Land grows Q1 net income by 40% to P719M

Upscale property developer Rockwell Land Corp. grew its first-quarter net profit by 40 percent year-on-year to P719 million, driven by higher leasing and interest income.

Rockwell’s consolidated revenues reached P3.5 billion in the first quarter, up by 5 percent, the company disclosed to the Philippine Stock Exchange on Wednesday.

Total cash flow grew by 29 percent year-on-year to P1.2 billion in the first three months, bringing earnings before interest, taxes, depreciation and amortization (Ebitda) to 34 percent of revenues, rising from 28 percent in the previous year.

Residential development accounted for 82 percent of total revenues during the quarter, slightly lower than last year’s 85 percent on higher contribution from commercial revenues.

Revenues recognized from the sale of condominium units were flat at P2.33 billion for the three-month period compared to last year’s level. These accounted for the bulk of residential development revenues, which amounted to P2.86 billion for the quarter.

To make the financial statement comparable, the first quarter 2018 figures were restated to reflect the impact of new accounting rules that were not yet reflected last year. Changes were mainly on the recognition of cost of real estate as well as selling and marketing expenses.

The increase in cash flow from residential development during the quarter was attributable to higher bookings of Proscenium and 32 Sanson projects, slightly offset by lower construction accomplishment for The Vantage during the period.

Meanwhile, commercial development revenues amounted to P562 million, 30-percent higher year-on-year, mainly driven by higher occupancy of Power Plant Mall expansion, RBC Sheridan and Santolan Town Plaza. This segment contributed 16 percent of total revenues, excluding the share in the joint venture with Meralco for the Rockwell Business Center in Ortigas, Pasig City.

The mall expansion added 5,000 square meters in leasable area to the group. Outside Rockwell Center, RBC Sheridan and Santolan Town Plaza added 47,000 and 20,000 sqm in leasable area, respectively. —DORIS DUMLAO-ABADILLA