EconomyEditor's PickRobinsons Land net profit up 38% in Q3

November 8, 2021

GOKONGWEI-LED Robinsons Land Corp. (RLC) said its net income in the third quarter improved by 38% year on year to P990 million on the back of improved operating conditions.

“We sustained business recovery despite the reimposition of stricter quarantine restrictions in August,” RLC President and Chief Executive Officer Frederick D. Go said in a statement on Monday.

“As we head into the last quarter of the year, we are encouraged by the waning number of COVID-19 (coronavirus disease 2019) cases in the country, the progress of the government’s vaccination program, and increased mobility,” he added.

RLC’s net profit surged 47% to P6.44 billion in the first nine months, while its consolidated revenues climbed 41% to P30.88 billion from P21.94 billion year on year.

The company said its malls business is “gaining momentum,” with third-quarter revenues and earnings before interest, taxes, depreciation, and amortization (EBITDA) improving by 8% and 14% year on year, respectively, due to the “improving business environment.”

RLC launched Robinsons Place La Union in September, which is the company’s 53rd lifestyle center and its third in the Ilocos Region. Meanwhile, Robinsons Place Tacloban was reopened after its rehabilitation.

Robinsons Malls booked revenues worth P6 billion in the first nine months, while its EBITDA totaled P2.84 billion.

Meanwhile, Robinsons Offices’ third-quarter revenues grew by 10% year on year to P1.56 billion. RLC said it “sustained its stable topline results,” with a 5% increase year on year to P4.66 billion in the first nine months.

In the first nine months, Robinsons Offices completed Cyber Omega in Pasig’s Ortigas Center and Bridgetowne Campus One, which is located at RLC’s Bridgetowne Destination Estate. The company said two more projects, Cybergate Iloilo 1 and Cybergate Galleria Cebu, are expected to be completed by yearend.

RLC had an office portfolio spanning 649,000 square meters (sq.m.) in net leasable area at end-September, 93% of which are leased.

On the other hand, revenues from Robinsons Logistics and Industrial Facilities grew by 24% to P187 million, owing to the current e-commerce market and the “steady demand” for warehousing facilities. It currently has five industrial facilities, which are located in Sucat, Muntinlupa, Sierra Valley in Cainta, San Fernando in Pampanga, and Calamba in Laguna.

“Encouraged by the consistent performance of this business, RLC is looking to infuse select industrial assets including land into its wholly owned subsidiary Robinsons Logistix and Industrials, Inc., or RLX, via a tax-free property-for-share swap,” RLC said.

Meanwhile, its property development business sold over 2.6 hectares of its 31-hectare Bridgetowne Destination Estate to Shang Robinsons Properties, Inc. and RHK Land Corp.

“The investment from the two of the most respected and recognized real estate names in Asia, during this time of economic uncertainty, exemplifies a vote of confidence in the estate’s future growth prospects,” Robinsons Land said.

RLC’s hospitality business saw revenues surge 60% year on year in the third quarter, generating P314 million. The company also launched its Grand Summit Hotel General Santos last month.

Robinsons Hotels and Resorts is “capitalizing” on the demand for quarantine facilities and long-stay accommodations.

Meanwhile, for its China business, RLC realized revenues worth P10.51 billion from its Chengdu Ban Bian Jie project after handing over condominium units from the first phase. It has also recovered 89% of its invested capital in the project with the repatriation of $200 million.

The company said the project is already 95% sold out.

Robinsons Land said it has spent 89% of its capital expenditure budget earmarked for the year, which were used for its malls, offices, hotels, industrial facilities, destination estates, residential projects, and for land acquisition.

The company plans to boost capital spending using proceeds from the P23.5-billion initial public offering of its real estate investment trust (REIT), which made its market debut in September.

REIT UNIT BOOKS PROFIT
RLC’s REIT, RL Commercial REIT, Inc. (RCR), booked a net income of P633.79 million in the first nine months ending September, a reversal of the net loss worth P18,950 incurred a year ago.

“This net income surge is mainly attributable to the earnings generated from two months of commercial operations covering Aug. 2 to Sept. 30, 2021,” RCR said in a separate disclosure to the exchange.

“[This is after] the infusion by the sponsor to the company of 12 office assets via [a] property-for-share swap and from the Cybergate Center Buildings under a building lease arrangement with the sponsor,” it added.

RCR booked a topline of P719.49 million for the period. Rental income accounted for the majority of its revenues at P585.55 million.

RCR currently has an asset size spanning 425,315 square meters (sq.m.) of gross leasable area (GLA).

RLC, its sponsor, plans to infuse one or two assets yearly into RCR. RLC previously said it is eyeing to add 40,000 to 100,000 sq.m. of GLA into RCR’s portfolio in the next 18 months. Its potential pipeline for infusion stands at approximately 422,000 sq.m. of GLA. RCR will also consider third-party assets for its growth and expansion.

Shares of RLC went up by 2.77% or 0.52% on Monday to close at P19.32 each, while RCR stocks declined by 1.80% or 13 centavos to end at P7.08 apiece. — Keren Concepcion G. Valmonte

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