MANILA, Philippines – Gokongwei-led property giant Robinsons Land Corp. (RLC) is extending a pandemic-era share buyback program by another P3 billion to support its share price.
The company said on Tuesday its board approved the buyback during a meeting on March 20. Companies typically buyback their shares when they deem their price is undervalued.
The announcement lifted the builder’s share price by 3.58 percent to P13.88 each. Still, the stock was down about 7 percent since the start of the year and about 28 percent from a year ago.
This is RLC’s third share buyback since implementing the program in the midst of the COVID-19 pandemic two years ago.
To date, the latest program brings its total buyback program to P9 billion, the disclosure showed.
“The objectives of the share buy-back program are to enhance the shareholder value and to manifest confidence in the corporation’s value and prospects through the repurchase of the commons shares of the company,” RLC said in the filing.
It also come after the developer booked robust earnings in 2022.
Net income last year hit P9.75 billion, up 21 percent for the year and higher by 12 percent from 2019. Total revenues were also up 25 percent to P45.5 billion.
The company’s earnings were bolstered by strong real estate sales, leasing and its mall segment.
Robinsons Malls booked revenues of over P13 billion or a growth of 58 percent.
Rental revenues alone were up 74 percent after lease discounts and concessions were removed and foot traffic returned following the easing of most pandemic restrictions.
RLC Residences and Robinsons Homes posted combined realized revenues of P9.1 billion, up 44 percent versus the same period in 2021.
The office segment saw revenues increase 9 percent to P7 billion while Robinsons Hotels and Resorts sales expanded by 94 percent to P2.33 billion.
Robinsons Land rides on economic reopening