RLC profit up 35.4%

Gokongwei-led property developer Robinsons Land Corp. grew its net profit for the quarter ending December by 35.4 percent to P1.4 billion.

RLC’s profit was boosted by the growth in its office and hotel portfolio alongside the stable performance of its shopping mall and residential projects.

The increase is also due to some base effects given the extraordinary property losses incurred in the same period in 2014 brought about by Supertyphoon “Yolanda” (international name: Haiyan) that ravaged Eastern Visayas.

The three-month period covering October to December is the first quarter in RLC’s fiscal year, which ends every September.

Total revenue rose by 9 percent to P4.79 billion while cash flow as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) went up by 11.2 percent to P2.58 billion.

RLC malls, office and hotels, contributed 83 percent of Ebitda.

The commercial centers division generated 46 percent or P2.2 billion of gross revenue, up by 12.6 percent.

The office buildings division contributed 10 percent or P467.2 million of the company’s revenue, up by 29.1 percent from last year’s P361.8 million. Lease income was derived from 10 completed office buildings with a total occupancy of 99 percent, including Cyberscape Alpha and Cyberscape Beta which opened in fiscal year 2014 and are located in the Ortigas Central Business District (CBD).

Currently, Cyberscape Alpha is 100 percent leased out while Cyberscape Beta has a lease take up of 94 percent.

The hotels division contributed 9 percent or P446.9 million to the company’s revenues, up by 11.4 percent obtained from 13 hotel properties for the period, including the newly opened Go Hotels Butuan as well as hotels opened in fiscal year 2014, namely: Go Hotels Iloilo and Go Hotels Alpha Ortigas.

The company also recently opened Summit Magnolia which forms part of the Magnolia Town Center, its mixed-use development in Quezon City.

Its residential segment contributed P1.68 billion in revenue, slightly up from P1.67 billion in the previous year.

RLC’s financial position remains solid, with 34 centavos in debt for every P1 in equity as of end-December. Net debt to equity stood at 31 centavos to P1 in debt.

This month, the company will issue fixed-rate bonds worth P10 billion.