RLC posts P1.84-B Q1 profit

Published May 9, 2019, 12:00 AM

by manilabulletin_admin

By James A. Loyola

Robinsons Land Corporation (RLC), the real estate arm of the Gokongwei group of companies, posted a 19 percent net income growth to P1.84 billion in the first quarter of 2019 from P1.55 billion in the same period last year.

RLC President and CEO Frederick Go
RLC President and CEO Frederick Go

In a disclosure to the Philippine Stock Exchange, the firm said consolidated revenue for the period was up by 7 percent to P6.78 billion from P6.36 billion, while overall EBITDA grew by 12 percent to P3.75 billion from P3.34 billion in the same period.

RLC said the sustained growth was driven by steady performance of the investment portfolio which rose by 13 percent to P4.81 billion led by the Office Buildings Division with the highest revenue growth of 30 percent.

Meanwhile, the Malls Division, which contributes 46 percent of the consolidated revenue, has a stable revenue growth of 9 percent.

“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,” said RLC President and CEO Frederick Go.

RLC’s Malls Division posted a steady growth of 9 percent to P3.14 billion with EBITDA up by 11 percent to P2.08 billion driven by strong rental income all across the existing malls coupled with the contributions from the four new malls opened last year.

The Office Buildings Division registered the highest growth in RLC’s investment portfolio as revenue increased by 30 percent to P1.12 billion from P0.865 billion versus same period last year.

EBITDA grew by 26 percent to P894 million mainly because of the successful leasing activities in new buildings. The Office Buildings division now has 20 operational sites with a total net leasable area of 523,000 sqm.

The Hotels and Resorts Division posted a 10 percent increase in revenues to P521 million driven by strong performances of Summit Galleria Cebu and Summit Hotels Magnolia together with the contributions from two new hotels opened last year.

The Residential Division’s realized revenues decreased by 7 percent to P1.97 billion mainly because of timing of revenue recognition. However, EBITDA marginally increased by 2 percent to P605 million.