RLC plans stock rights offering

Robinsons Land Corporation (RLC), the property development arm of the Gokongwei group, is planning to raise up to R20 billion from a stock rights offering to fund its land banking activities.

In a disclosure to the Philippine Stock Exchange, the firm said its Board of Directors “has approved in principle the rights offer of its common shares.”

The shares will be offered to existing shareholders at the rate of one Rights Share for approximately every 3.6 to 4.3 Common Shares. The number of shares to be offered will amount to 950 million to 1.1 billion shares.

“RLC intends to use the majority of its net proceeds from the Offer to finance the acquisition of land located in various parts of the country for all its business segments,” the company said.

For the first nine months of the 2017, RLC reported a consolidated attributable net income of R4.57 billion, a slight increase from last year.

Total real estate revenues were down by 3 percent to R15.27 billion against last year’s R15.80 billion, while hotel revenues were up by 5 percent to R1.37 billion.

The Commercial Centers Division contributed 47 percent or R7.82 billion of RLC’s gross revenues, posting a 5 percent growth due to full-year rental revenue contribution of lifestyle centers opened in 2015 and revenue contribution of the three new malls and two mall expansions opened in 2016.

RLC’s Residential Division contributed 31 percent or R5.06 billion to RLC’s revenues while Office Buildings Division contributed 14 percent or R2.39 billion, up by 6 percent from last year’s R2.26 billion. (JAL)