Gokongwei-led property firm posts robust growth in Q4 2023

Diversified real estate firm Robinsons Land Corporation (RLC) posted a robust financial performance in the fourth quarter of 2023, with a seven percent year-on-year increase in net income attributable to the parent company, reaching P322 billion despite an elevated base.

The full-year 2023 results showed impressive growth, with a 24 percent rise in net income attributable to the parent, totaling P12.06 billion, primarily fueled by the success of its malls, hotels, and joint ventures.

Excluding the impact of the China profit from the previous year, the net income attributable to the parent for the year would have surged by an impressive 45 percent year-onyear.

“We are delighted with the outstanding performance demonstrated across our real estate businesses, which propelled us to reach record breaking heights. 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," said Lance Y. Gokongwei - RLC Chairman, President and chief executive officer (CEO).

In 2023, RLC posted consolidated revenues of P42.02 billion, an eight percent decrease from the previous year.

The lofty base last year was a result of the substantially recognized revenue contribution from China's Ban Bian Jie development project. Excluding China’s revenues from last year, consolidated revenues would have been up by 28 percent year-on-year.

Despite the high base in 2022, calendar year 2023 EBITDA and EBIT reached P22.82 billion and P17.34 billion increasing by 18 percent and 23 percent respectively.

This performance was driven by increased revenues and improved operational efficiencies, culminating impressive operating margins of 54 percent for EBITDA and 41 percent for EBIT.

The investment portfolio contributed 69 percent of RLC's revenues, totaling P28.82 billion, and accounted for 76 percent of EBITDA (Php17.42 billion) and 70 percent of consolidated operating income. This growth was primarily driven by the malls, hotels, RLX and office businesses. The remaining portion of revenues and EBITDA, amounting to P13.20 billion and P5.40 billion, respectively, came from RLC's development portfolio.

Our financial position remains strong, with total assets reaching P236 billion and Shareholders' Equity at P142 billion, marking a six percent and five percent increase, respectively, from December 31, 2022. As of December 2023, our net gearing ratio stands at 36 percent.

Malls Performance

Robinsons Malls continues to experience significant increase in revenues, driven by sustained growth in consumer spending and retail sales.

Year-on-year, revenues surged by 24 percent to P16.21 billion P16.21 billion, with EBITDA rising by 41 percent to P9.28 billion and EBIT jumping by 94 percent to P5.85 billion.

Rental revenues also saw a substantial increase, rising by 28 percent to Php11.49 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.

This growth was attributed to higher occupancy rates, with a net increase of over 400 tenants, increased sales percentages, and higher fixed rental rates.

Currently, total mall leasable space stands at 1.6 million square meters, accommodating over 8,000 retailers, with a system-wide occupancy rate of 92 percent.

Moreover, the Company also attributed its positive performance to the resurgence in tourism and hospitality.