ROBINSONS Land Corp. (RLC) said net profit rose nearly 22% in the second quarter, reflecting the performance of its commercial centers business after the opening of four new shopping malls.
The property developer reported attributable net income of P2.17 billion in the second quarter, up 21.9% from a year earlier.
Revenue grew 18.8% to P8 billion during the three-month period, after a 19.4% increase in revenue real estate operations to P7.45 billion. Hotel operations added P558.7 million, up 11.3% from a year earlier.
Year to date, RLC’s attributable net income is up 20.4% at P4 billion.
Revenue in the first half of the year grew 12.9% to P14.79 billion, of which real estate accounted for P13.71 billion, up 13.1% from a year earlier. Revenue from hotel operations rose 10.6% to P1.08 billion.
“We continue to post strong earnings growth as we remain optimistic about new opportunities. We look forward with much enthusiasm to an even better financial performance in the near future,” RLC President and Chief Executive Officer Frederick D. Go said in the statement.
By business segment, the company’s commercial centers division accounted for 44% or P6.45 billion of revenue, up 11% from a year earlier. This was driven by the growth of mall rental revenue and returns from four new malls opened last year: Robinsons Place Ormoc, Robinsons Place Pavia, Robinsons Place Tuguegarao and Robinsons Place Valencia.
The residential business accounted for 31% of total revenue, totaling P4.67 billion in the first half, up 5% from a year earlier.
Its office buildings segment accounted for 16% or P2.31 billion, up 29% from a year earlier, driven by an increase in rentals and higher renewal rates recorded during the period. The opening of three new offices last year, Exxa Tower, Zeta Tower and Cyberscape Gamma, also added to the increase.
Hotels and resorts accounted for 7% of revenue at P1.08 billion, up 11% from a year earlier, due to the strong performance of Summit Magnolia, Summit Galleria Cebu and Go Hotels branches in Palawan, Bacolod and Davao. Its new hotels, Summit Tacloban, Go Hotels — Iligan and Dusit Thani Mactan Cebu Resort, also helped drive growth as well.
Revenue from the industrial and integrated development division amounted to P269.2 billion, up 369% from a year earlier, because of the “partial upfront recognition of revenue from a land sale and lease revenues from the Sucat warehouse.”
RLC said it spent P9.38 billion in the first half of the year from its capital expenditure allocation of P27 billion for 2019.
It said it remains on the lookout for opportunities to expand its various businesses and is open to joint venture projects with property owners and developers. — Denise A. Valdez