Condo sales lift Rock­well Land prof­its

Business World - - CORPORATE NEWS - — Arra B. Fran­cia

ROCK­WELL Land Corp. posted dou­bledigit profit growth last year, fol­low­ing im­proved con­do­minium sales and more project completions.

In a reg­u­la­tory fil­ing, the Lopez-led com­pany said its net in­come at­trib­ut­able to the par­ent stood at P2.11 bil­lion in 2017, 16% higher than the P1.82 bil­lion it posted in the year be­fore.

The profit in­crease was sup­ported by a 12.5% growth in rev­enues to P14.3 bil­lion, bulk of which came from the com­pany’s res­i­den­tial com­po­nent or P12.6 bil­lion. This also marked a 12% in­crease from the seg­ment’s P11.04-bil­lion rev­enue con­tri­bu­tion in 2016.

“The 12% in­crease in this seg­ment’s rev­enue was largely in­flu­enced by higher book­ings of the Prosce­nium projects, and with higher con­struc­tion ac­com­plish­ment for Edades Suites and Rock­well Pri­maries’ The Van­tage,” the com­pany said.

Rock­well recorded reser­va­tion sales of P11.6 bil­lion dur­ing the year, slightly lower than 2016’s P11.8 bil­lion. The Prosce­nium, its lux­ury con­do­minium de­vel­op­ment of­fer­ing units priced at P7.9 mil­lion to P130 mil­lion each, drove the reser­va­tion sales for the year, along­side The Van­tage, a two-tower mixed use project hous­ing high-end con­do­minium units.

The Lopez-led de­vel­oper launched only one project last year, called The Ar­ton along Katipunan Av­enue in Que­zon City. The three-tower res­i­den­tial de­vel­op­ment, which fea­tures 1,700 units, booked P1.6 bil­lion in sales by the end of De­cem­ber.

Rock­well Land’s com­mer­cial de­vel­op­ment busi­ness — in­clud­ing of­fice sales, com­mer­cial leas­ing, and cinema op­er­a­tions — con­trib­uted P1.4 bil­lion to last year’s rev­enues, up by 7% year- on-year. The com­pany at­trib­uted the in­crease to the higher oc­cu­pancy at its of­fice tower, 8 Rock­well in Makati City. The listed firm is cur­rently ex­pand­ing its Power Plant Mall in Makati City by 5,600 square me­ters, re­sult­ing in a 3% drop in re­tail op­er­a­tions for the pe­riod. Rev­enues from cinema op­er­a­tions also dipped by 4% due to fewer block­buster movies and ticket price in­creases.

Rev­enues from ho­tel op­er­a­tions, de­rived from Aruga Ser­viced Apart­ments, slipped by 10% to P312.7 mil­lion last year, af­ter Rock­well Land dropped the op­er­a­tions of Aruga at The Grove.

Rock­well Land re­ported an ac­tual spend­ing of P11.8 bil­lion for cap­i­tal ex­pen­di­tures last year, lower than the P14 bil­lion it has orig­i­nally al­lot­ted for 2017. The capex went to the de­vel­op­ment of Prosce­nium, the ex­pan­sion of Pow­er­Plant Mall, RBC Sheri­dan, and San­tolan Town Plaza.

Shares in Rock­well Land dropped seven cen­tavos or 3.55% to close at P1.90 each at the Philip­pine Stock Ex­change on Tues­day.

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