ROBINSONS Land Corp. (RLC) recorded a 19% growth in attributable profit during the first quarter of the year, on the back of strong real estate sales and improving hotel revenues.
In a regulatory filing, the Gokongwei-led property developer said net income attributable to the parent reached P1.83 billion, higher than the P1.54 billion it posted in the same period a year ago.
Revenues, meanwhile, stood at P6.78 billion, seven percent higher than the P6.36 billion it realized in the first quarter of 2018.
“Robinsons Land continues to post strong earnings from organic growth as well as from our expansion programs. We look forward with much enthusiasm to the improvement of our performance in the coming months,” RLC President and Chief Executive Officer Frederick D. Go said in a statement.
The listed firm operates five divisions, namely commercial centers, residential, office buildings, hotels and resorts, and industrial and integrated developments.
The commercial centers segment accounted for 46% of RLC’s revenues at P3.14 billion, representing a nine percent year-on-year growth. This can be attributed to same-mall rental growth of seven percent, as well as the contribution of new malls such as Robinsons Place Ormoc, Robinsons Place Pavia, Robinsons Place Tuguegarao, and Robinsons Place Valencia.
RLC ended March with a total mall leasable space of 1.5 million square meters (sq.m.) housing more than 9,000 retailers.
For the residential segment, revenues dropped seven percent to P1.97 billion amid steady sales take-up of P3.7 billion. The company said the decline was due to the timing of revenue recognition. It plans to launch a total of four projects this year, namely Sapphire Bloc Phase 2, Galleria Residences Cebu’s third tower, and Cirrus and Sync Communities in Pasig City.
The office buildings division’s topline grew by 30% to P1.12 billion from revenues of P865 million in the same period a year ago. RLC had a total of 20 operational sites covering 523,000 sq.m. of net leasable area.
RLC’s hotels and resorts unit booked revenues of P521 million, boosted by the operations of Summit Galleria Cebu and Summit Hotels Magnolia in addition to the contributions of newly opened hotels.
Meanwhile, the industrial and integrated development division generated P30 million in revenues after turning over its first logistics facility in Sucat, Muntinlupa with a total leasable space of 33,000 sq.m.
RLC also noted that its project in China’s Chengdu province has already sold out all 795 units, with revenues seen to be recognized within the year.
The company spent a total of P3.6 billion in capital expenditures during the quarter, out of its P27-billion allocation for the entire year.
Shares in RLC fell 3.35% or 80 centavos to close at P23.05 each at the stock exchange on Thursday. — Arra B. Francia