Robinsons Land Corporation (RLC), one of the leading diversified real estate companies in the Philippines, reported seeing signs of recovery in the third quarter of 2020 although first half performance pulled down earnings in the first nine months of the year.

In a disclosure to the Philippine Stock Exchange, RLC said net income dropped 39.7 percent to P4.4 billion in the first nine months of 2020 from P7.3 billion in the same period last year.

“As quarantine restrictions are slowly lifted and more industries start to re-open, the Company’s core businesses, primarily its malls, are noting upswings in consumer demand and beginning to show signs of recovery,” RLC said.

Net income in the third quarter of 2020 grew by 38 percent versus the second quarter of the year to end at P717 million.

“Amid quarantine procedures and public safety concerns, each of the Company’s business units prioritized digital transformation initiatives and generated positive cash flows,” the firm said.

In the first nine months of 2020, consolidated revenues registered at P20.00 billion, contracting by 11 percent. The Company’s Development Portfolio, accounting for 49 percent of consolidated revenues, increased by 33 percent to P9.84 billion to partially offset the decline from the Investment Portfolio which ended at P10.17 billion, 33 percent lower versus the same period last year.

“We are encouraged by the steady recovery of our businesses on the back of improving trends seen on a quarterly basis, as well as in October,” RLC President and CEO Frederick Go said.

He noted that, “Increasing customer engagement and the sustained interest from external partners give us confidence that business will continue to pick up in the coming months. For the remainder of the year, we will continue to focus on operational recovery while implementing strict safety protocols.”

RLC’s Commercial Centers Division recorded improvements in operational gross leasable area (GLA), number of operating tenants, and foot traffic in the third quarter, albeit not yet at pre-COVID levels.

RLC continues to provide rental concessions and discounts to support partner tenants during this challenging time.

Through the sustained operations of BPOs and the strong demand for flexible workspaces, the Office Buildings Division continues to thrive amid the economic downturn, growing revenues by 20 percent to P4.34 billion for the first three quarters of 2020.

For its Residential Division, RLC recorded P9.75 billion nine-month revenues, 36 percent higher versus the same period last year.

Maintaining its reliability and stability, the Industrial and Integrated Developments Division (IID) grew revenues from operational industrial facilities by 101 percent to P164 million driven primarily by its two warehouse facilities.

The Robinsons Hotels and Resorts (RHR) Division developed innovative products in the mold of private offices and affordable, all-in accommodations as a response to unprecedented disruptions caused by the pandemic.

Mainly catering to the essential business sectors as well as temporary accommodations of travelers, RHR managed to post revenues of P856.4 million in the first nine months.

“As we navigate the path to recovery, we will continue to provide relevant solutions to evolving needs and aspirations in the new norm, while prioritizing the health, safety and well-being of our employees and customers. Together with our partners, we will work towards strengthening corporate agility and sustainability to deliver value to our stakeholders,” Go said.