ROBINSONS Land Corp. (RLC) saw a decline in its share price last week despite announcements to launch two residential projects in the second half of the year and allocate shares towards other initiatives.
Data from the Philippine Stock Exchange showed the Gokongwei-led property developer ranking 12th in value turnover, with P846.52 million worth of 59.42 million shares exchanging hands from July 8 to 12.
The property developer shares closed at P14.26 apiece on Friday, dipping by 0.7% from their P14.36 close a week earlier.
Year to date, the stock has also declined by 10.5%.
Jemimah Ryla R. Alfonso, an equity analyst at Regina Capital Development Corp., said that the price movement of RLC mirrors that of other property stocks during the past few days.
“At this point, RLC is still trying to find its strong support level due to the steep decline last week,” Ms. Alfonso said in an e-mail.
She also said that the stock is currently moving sideways, and the oscillators indicate that the momentum remains sluggish.
Additionally, the [down]trend is consistent across the property sector this week, due to a lack of catalyst and as investors remain cautious towards the property sector, Ms. Alfonso said.
Last week, a company official at RLC said that the property developer is likely to launch two residential projects next semester.
The company is considering launching two to three towers in Cainta, Rizal, where it has already introduced four.
In a forum attended by reporters, RLC’s Senior Vice-President and RLC Residences General Manager John Richard B. Sotelo said that these developments are driven by the strong demand for properties in the area.
The company also said that it is optimistic about the prospects of the residential market following its sales performance in the past few months.
Additionally, RLC disbursed over P2 billion out of the P8.49 billion in proceeds from the block placement of RL Commercial REIT, Inc. shares.
RLC said that these procedures were carried out to comply with the local stock market’s requirement to submit an external auditor’s certification on the information being presented by the company relating to the use of proceeds.
For Ms. Alfonso, the disbursement of Robinson’s Land aligns with their expansion strategy.
“It appears property developers are stepping up their game, adding more projects as concerns over inventory begin to ease,” she said.
The stock is currently undervalued, but Ms. Alfonso advised that it may be a good idea for investors to add RLC to their portfolios.
“The mall segment is currently the bright spot in the property sector, buoyed by robust and resilient consumer spending,” she said.
Additionally, RLC is “well-positioned to ride this wave of growth, and with the residential and office segments showing lukewarm results, many investors are now considering the potential of the mall and hotel sectors.”
In the first three months of 2024, RLC’s attributable net income reached P4.07 billion from P2.66 billion in the same period in 2023, up by 52.8%.
Meanwhile, consolidated revenues reached P11.03 billion from P9.28 billion in the first quarter of 2023, an increase of 18.8%.
“RLC is currently trading within its support area, ranging between P14.20 and P14.24, and the stock needs to break through the resistance at P14.80 to fully shift the downward momentum,” Ms. Alfonso said. — Abigail Marie P. Yraola
