RLC net income up 40% to P8.2 B

Robinsons Land Corp. (RLC) grew its net income 40 percent last year to P8.2 billion.

Consolidated revenue grew 31 percent to P29.44 billion.

RLC president and chief executive officer Frederick Go said 2018 was a banner year for the company with both its investment and development portfolios performing well.

The robust performance of the development portfolio surged 72 percent to P11.28 billion due to strong revenues recognized from sale of residential units coupled with the sale of institutional lots to joint venture companies.

The malls division, which contributed 41 percent to total revenues, ended 2018 with a healthy growth of 11 percent to P11.94 billion.

Last December, the company opened its 51st mall, Robinsons Place Pavia in Valencia Bukidnon, bringing total mall leasable space to 1.5 million square meters.

The offices division, meanwhile, now has 20 operational sites with a total net leasable area of 523,000 sqm.

The division registered the biggest growth in its investment portfolio with a revenue increase of 26 percent to P4.11 billion, mainly due to rental escalation and revenue contribution of some office buildings.

For the hotels and resorts division, RLC is doing a reorganization to allow it to compete in the very challenging and crowded segment.

The division was saddled by weaker sales of some of its properties, pre-operating expenses of new and upcoming hotels, as well as expected higher overhead in the head office.

As a result, revenue increased five percent to P1.98 billion but EBITDA dropped seven percent to P673 million.

The residential division, meanwhile, posted a robust growth of 33 percent with realized revenue amounting to P8.69 billion.

Last year, RLC spent P23.4 billion for the development of malls, offices, hotels and warehouse facilities and acquisition of land.

The company has 754 hectares of land bank across the country.