Robinsons Land income rises 40% in 2018 on strong residential property sales
EARNINGS of Robinsons Land Corp. (RLC) increased by 40% in 2018, boosted by higher sales of its residential properties coupled with the steady performance of its mall and office units.
In a statement issued Thursday, the Gokongwei-led property developer said net income reached P8.23 billion last year, higher than the P5.9 billion it posted in 2017. Consolidated revenues also grew by 31% to P29.44 billion.
“2018 has been a banner year for Robinsons Land as both our investment and development portfolios saw robust earnings growths driven by key business strategic initiatives and strong demand from our customers and buyers,” RLC President and Chief Executive Officer Frederick D. Go said in a statement.
The malls division provided bulk of the listed firm’s revenues at P11.94 billion, 11% higher year on year. The company attributed this to higher rental income and the opening of four new malls in 2018, namely Robinsons Place Ormoc, Robinsons Place Pavia, Robinsons Place Tuguegarao, and Robinsons Place Valencia in Bukidnon.
RLC now has a total of 51 malls covering a total leasable space of 1.5 million square meters (sq.m.).
The residential segment grew its revenues by 33% to P8.69 billion. RLC said it benefited from the influx of both domestic and overseas buyers, which pushed sales take-up 49% higher to P15.3 billion. Meanwhile, its development segment, which sells commercial lots, booked P2.59 billion in revenues.
For the office division, revenues went up by 26% to P4.11 billion, as it now has 20 operational sites spanning a net leasable area of 523,000 sq.m.
“(The increase was) mainly due to rental escalation and revenue contribution of the office buildings completed in 2017 driven by the continuous growing IT-BPM (information technology-business process management) industry,” the company said.
RLC’s hotels and resorts division was slower at 5% to P1.98 billion, as the company said it is currently ramping up its efforts to boost its presence in the “very challenging and crowded segment.”
Its newly established logistics unit meanwhile generated P135 million in revenues, following the turnover of its first logistics facility in Sucat, Muntinlupa covering 33,000 sq.m. in total leasable space.
Overseas, the company said it has already sold 759 of the 795 units included in the first phase of its residential condominium in Chengdu, China.
RLC said it spent P23.4 billion in capital expenditures this year, which went to the development of malls, offices, hotels, warehouse facilities, and the acquisition of land.
Shares in RLC rose 0.42% or 10 centavos to close at P23.80 apiece at the stock exchange on Thursday. —