MANILA, Philippines — Gokongwei-led Robinsons Land Corp. said net income last year reached a record P12.06 billion, up from P9.75 billion in 2022, on improving profit margins and a non-recurring gain.
Earnings in the past year were also supported by the strong performance of its malls, hotels, and joint ventures.
“We are delighted with the outstanding performance demonstrated across our real estate businesses which propelled us to reach record breaking heights,” Robinsons Land President and CEO Lance Gokongwei said in a statement on Friday.
“These achievements underscore our steadfast dedication to delivering excellence through timely execution, strategic initiatives, and an unwavering commitment to delivering quality and value to all our stakeholders,” he added.
READ: Robinsons Land hits record profit on mall traffic, solid sales
The developer underscored robust profit margins, partly due to increasing operational efficiencies. Its earnings before interest, taxes, depreciation, and amortization (Ebitda) margin ended the year at 54 percent.
Mall, rental revenues
Revenues in 2023 slipped 8 percent to about P42 billion because of the high base created by its China-based operations the previous year.
The company’s mall segment led growth in 2023 as revenues jumped 24 percent to P16.2 billion.
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Rental revenues alone climbed 28 percent to P11.5 billion.
“Despite the high base in the third quarter of 2023, mall revenues continued to expand, increasing by 10 percent, while rental revenues rose by 12 percent quarter-on-quarter,” Robinsons Land said.
“This growth was attributed to higher occupancy rates, with a net increase of over 400 tenants, increased sales percentages, and higher fixed rental rates,” it added.
The developer’s total mall leasable space stood at 1.6 million square meters, with a system-wide occupancy rate of 92 percent.
Hotels, resorts
Robinsons Hotels and Resorts said revenue nearly doubled to P4.56 billion, lifted by record high revenue of P1.32 billion in the fourth quarter of 2023.
Robinson Land said it also recognized nearly P1.2 billion in deferred gains from the sale of land to joint venture entities.
During the past year, new project launches swelled the sales take-up of RLC Residences and Robinsons Homes by 26 percent to P21.33 billion, also a record for the builder.
Realized revenues for the residential group hit P12 billion, up 32 percent, due to “higher collections from buyers reaching the equity threshold, faster construction progress, and strong equity earnings contribution from joint venture projects”.
Offices continue to experience slower growth due to the shift to hybrid work as revenues in 2023 climbed by 4 percent to P7.36 billion.