RLC Q1 profit up 82% to P3.34 B

Robinsons Land Corp. (RLC), the listed property company of the Gokongwei group, grew its net income by 82 percent to P3.34 billion in the first quarter.

Consolidated revenue jumped by 70 percent to P11.57 billion.

“The robust earnings growth was mainly driven by RLC’s residential business as it changed its accounting policy to align it with the industry practice,” RLC said.

The residential business posted a 241 percent year-onyear increase to P6.7 billion and contributed 58 percent of the consolidated revenue.

Despite the challenging business environment, RLC president and CEO Frederick Go said the company continues to be optimistic about its growth outlook.

“Our strong fundamentals and solid balance sheet will help us navigate the challenges brought about by the new coronavirus. We will also seek opportunities and new ways of doing business to deliver long-term sustainable value. As we emerge from the enhanced community quarantine, our priorities are the welfare and wellbeing of our employees, business partners, and patrons,” Go said.

For the 1st quarter, RLC spent P5.91 billion in capital expenditure for its Philippine operations.

RLC will no longer pursue new projects because of the challenging business environment.

“Due to the effects of the enhanced community quarantine and the expected slow transition back to normal life, RLC has assessed its new projects pipeline. Projects that have not commenced will no longer be pursued for now. For the full year, RLC has pared down its planned capital expenditure to P24 billion for its domestic operations,” the company said.

RLC has received the highest credit rating of PRS Aaa for its proposed bond issue amounting to up to P20 billion. This means the company’s capacity to meet its financial commitment on the obligation is extremely strong.

The issue was also assigned a stable outlook by local debt watcher Philippine Rating Services Corp. (PhilRatings).

The company is mainly engaged in the development of shopping malls, offices, hotels, and industrial facilities as well as the development of mixed-use properties, residential buildings, land and residential housing development, including socialized housing projects located in key cities and other urban areas nationwide.