RLC posts strong growth in first half

Published August 5, 2021, 5:48 PM

by James A. Loyola

Robinsons Land Corporation (RLC), the real estate arm of the Gokongwei group of companies, reported a 48 percent jump in net income to P5.45 billion for the first six months of 2021.

In a disclosure to the Philippine Stock Exchange, the firm said consolidated revenues rose by 55 percent to P26.00 billion from P16.70 billion a year ago.

For the second quarter of 2021, RLC’s net income soared to P2.56 billion, exceeding last year’s performance by almost fourfold at 394 percent.

Despite unstable circumstances, RLC reported increasing customer activity and engagement in its malls, offices, hotels, industrials, as well as property development and residential businesses.

The robust growth in the first half of 2021 is driven by the continued recovery of RLC’s core businesses, which posted a 51 percent surge in net income, and the recorded earnings from its Chengdu Ban Bian Jie project in China, as well as from the sale of parcels of land within the Bridgetowne Destination Estate.

“Our performance for the first half of the year is a testament to the success of our strategic initiatives, which positions the Company for recovery and growth,” said RLC President and CEO, Frederick Go.

He added that, “Amidst the very challenging business environment, we continue to pursue new opportunities and agile innovations to deliver sustainable value to all our stakeholders.”

The Commercial Centers Division posted revenues of P4.19 billion and EBITDA of P2.01 billion in the first six months of 2021. In the same period, Robinsons Place Tacloban was re-opened to the public after its rehabilitation.

The Office Buildings Division’s revenues increased by 3 percent to P3.11 billion, while EBITDA and EBIT registered at P2.58 billion and P2.13 billion, respectively.

In the first half of the year, industrial revenues climbed 14 percent to P127.3 million. EBITDA and EBIT rose by 17 percent and 10 percent to P61.3 million and P27.9 million, respectively.

For its property development segment, RLC crystallized the value of its land bank in Bridgetowne East with the recognition of the gain on sale of land to Shang Robinsons Properties, Inc. (SRPI) and RHK Land Corporation (RHK).

Meanwhile, for the Residential Division, net pre-sales grew 19 percent. Realized revenues registered at P4.74 billion in the first half of 2021, while EBITDA and EBIT ended at P1.77 billion and P1.73 billion, respectively. Two projects were launched during this period.

As restrictions on travel and tourism slightly ease, Robinsons Hotels and Resorts (RHR) recorded a 28 percent year-on-year growth in EBITDA to P122.1 million in the first six months on the back of operational efficiencies and higher demand for quarantine hotels and long- stay accommodations.

In the first six months of the year, RLC realized revenues of P10.51 billion from its Chengdu Ban Bian Jie project following the handover of Phase 1 condominium units.

EBITDA and EBIT closed at Php1.02 billion each. Furthermore, the Company has recovered 89 percent of its invested capital with the repatriation of US$200 million.