RLC to ramp up capital spending in second half

ROBINSONS Land Corp. (RLC) will ramp up its disbursement of capital expenditures (capex) in the second half of 2019, after spending less than half of its budget in the first semester.

In a presentation posted on its website, the Gokongwei-led property developer said it spent P9.38 billion in capex during the first six months of 2019. It committed to spend a total of P27 billion for the entire year, 15.8% higher than its P23.4-billion spending in 2018.

“(We) expect acceleration in capex spending in the next two quarters of 2019,” the company said.

The company is slated to complete the expansion of Robinsons Place Magnolia in Quezon City and Robinsons Starmills Phase 1 in Pampanga within the year. It recently opened Robinsons Galleria South Mall in Laguna, which already has an occupancy rate of 91.3%. This will bring RLC’s gross leasable area (GLA) to 1.569 million square meters (sq.m.)

RLC said its malls have a system-wide occupancy rate of 95%, with a network of over 9,000 retailers.

Under the office business, RLC will complete Cybergate Manila, Giga Tower in Pasig, and Luisita Two in Tarlac, to end the year with 588,000 sq.m. in GLA. Its 20 operating offices is 98% leased out.

RLC’s hospitality segment will also see the opening of Dusit Thani Mactan Cebu, Summit Naga, and Summit Greenhills. It will have a total of 3,248 rooms by the end of the year, 19% higher than the 2,736 rooms it had in 2018.

The company’s hotel brands include international names Crowne Plaza, Holiday Inn, and Dusit Thani, and homegrown Summit and Go Hotels.

Meanwhile, the residential unit booked P9.7 billion in reservation sales for the first half, 30% higher year on year, on account of three project launches worth P12.67 billion in sales.

Its residential project in China’s Wuhou District with a total land price of P9.63 billion has also been sold out as of March.

The company is also set to complete the construction of a warehouse facility in Laguna with a GLA of 35,000 sq.m. This is its second industrial project following its warehouse in Muntinlupa City, covering 33,000 sq.m. GLA.

RLC said it will continue to scout for strategic land bank across the country. It currently has 766 hectares of land valued at P44.48 billion, bulk of which are in Luzon.

The company’s net income attributable to the parent climbed 20% to P4.01 billion in the first half of 2019, following a 13% increase in revenues to P14.786 billion.

Shares in RLC fell 4.14% or P1.05 to close at P24.30 each at the stock exchange on Tuesday. — Arra B. Francia