Gokongwei-led property developer Robinsons Land Corp. (RLC) has set aside P26 billion for capital outlays this year, about 17.4 percent larger than its capital spending last year when the COVID-19 pandemic constrained construction and other business activities.
This year’s domestic capital expenditures will be funded through internally generated cash from operations and borrowings, RLC said in its annual report.
The amount will be earmarked to develop subdivision land, condominium, residential units and other real estate properties for sale, as well as to expand investment properties and equipment.
Land acquisition
This year, RLC has three townships under development: Bridgetowne in Quezon City and Pasig City; Sierra Valley in Cainta and Taytay City, Rizal; and, Montclair in Porac City and Angeles, Pampanga.
RLC is also looking to inject its mature office assets into a real estate investment trust (REIT) company this year. Currently, RLC has 25 office buildings with total net leasable area of over 600,000 square meters.
Last year, RLC spent P22.15 billion for land acquisition, development of malls, offices, hotels and warehouse facilities, as well as for the construction of residential projects.
Rental concessions
In 2020, RLC’s net income ended at P5.26 billion, 39.5 percent lower than the previous year, as gross revenues fell by 16.9 percent to P25.4 billion.
In the fourth quarter of 2020 alone, RLC’s net income grew by 20 percent versus the third quarter to end at P863 million.
For full-year 2020, the commercial centers division accounted for 23 percent of total business to close at P5.96 billion, 55 percent lower due to rental concessions given to tenants affected by temporary mall closures and quarantine restrictions. RLC has 52 shopping malls, of which nine are in Metro Manila.
The office division contributed 23 percent of revenues amounting to P5.85 billion last year, growing by 10 percent.
Hotel and resorts generated revenues of P1.08 billion or 4 percent of total company revenues. Revenues from this segment went down by 55.5 percent as the pandemic bludgeoned the tourism business.
“Heading into 2021, we expect to sustain the gradual recovery of our businesses as quarantine restrictions ease and consumer confidence starts to bounce back. We will continue to provide relevant real estate solutions, while prioritizing health and safety,” RLC president Frederick Go said.