ROBINSONS Land Corp. (RLC) almost doubled its attributable profit in the third quarter of 2018, driven by the expansion of its mall network coupled with the higher sales from its residential unit.
In a regulatory filing, the Gokongwei-led property developer said net income attributable to the parent grew by 96% to P3.22 billion in the July to September period, compared to its P1.65-billion earnings in the same period a year ago. Revenues also went up 56% to P8.75 billion for the quarter.
On a nine-month basis, the listed firm’s net income climbed 43% to P6.55 billion versus P4.57 billion by end-September of 2018. This followed a 31% uptick in revenues to P21.8 billion for the period.
“The strong earnings is a result of the strategic initiatives we initiated to respond to the market and the creation of new revenue streams for the company,” RLC President and Chief Operating Officer Frederick L. Go said in a statement.
RLC operates five business segments, namely commercial centers, residential, office buildings, hotels, and infrastructure and integrated development.
Revenues under the mall division rose by 13% to P8.8 billion, as the company hit the 50th mark with the opening of Robinsons Place Tuguegarao last July. This brought RLC’s total mall leasable space to 1.4 million square meters (sq.m.).
RLC said it benefited from the influx of overseas buyers during the period, alongside efforts to improve product development and its sales force. Realized revenues from the segment went up by 29% to P6.5 billion.
Under offices, revenues surged by 17% to P2.8 billion, thanks to new buildings leased out to business process outsourcing (BPO) firms. The company ended September with a net leasable area of 440,000 sq.m. across 18 sites.
RLC’s infrastructure and integrated developments division recorded P2.2 billion in revenues for the period. The newly created division sources its revenues from building warehouses for lease, selling institutional lots, and acquiring land.
The hotels and resorts unit grew its revenues by eight percent to P1.5 billion. The company attributed the slower growth to the weaker sales of some projects, pre-operating expenses of new and upcoming hotels, and higher overhead expected in its head office.
Meanwhile, RLC has started pre-selling its first international project in China, which involves the first phase of a residential high-rise condominium. More than 90%, or 740 out of the 795 units, have already been booked so far. The company expects to recognize the revenues for the project next year.
“RLC continues to look for suitable properties to develop and for land banking across the country,” the company said.
Shares in RLC went down by 0.47% or 10 centavos to close at P21.20 apiece at the stock exchange on Tuesday. — Arra B. Francia