EARNINGS of Robinsons Land Corp. (RLC) ballooned 82% in the first quarter due to changes in its accounting policy which resulted in higher profits from its residential business.
The Gokongwei-led real estate company reported a net income of P3.34 billion in the January-to-March period, jumping from P1.8 billion in the same period last year. Consolidated revenue likewise rose 70% to P11.57 billion.
In a statement, the company said its new accounting policy resulted in a 241% leap in residential revenues to P6.7 billion, which made up 58% of its consolidated revenue. This is due to the recognition of revenue based on a buyer’s equity threshold of 10% from the previous 15%.
But the remainder of revenues which comprised those from RLC’s investment portfolio were flat because of operational disruptions from following lockdown measures implemented in mid-March.
Capital expenditures (capex) for local operations stood at P5.91 billion in the first quarter. For the full year, RLC said it is cutting capex to P24 billion from P27 billion as an effect of the enhanced community quarantine (ECQ).
“Due to the effects of the ECQ and the expected slow transition back to normal life, RLC has assessed its new projects pipeline. Projects that have not commenced will no longer be pursued for now,” it said.
By business segment, RLC’s mall business contributed revenues of P2.87 billion, down by 8% from a year ago. This is attributed to the closure of its 52-mall network across the country in compliance with government orders to mitigate the spread of the coronavirus.
The office segment added P1.43 billion, up by 27% from last year, due to the strong market reception of its new buildings in Quezon City and Tarlac. RLC now has 23 operational sites in its portfolio of office buildings.
Hotels and resorts raised P468 million in the first quarter, down by 10% from in 2019. The company said even before the lockdown, there have been frequent booking cancellations because of fear of the coronavirus and the eruption of Taal Volcano in January. The company’s average occupancy rate stood at 79% for its network of more than 3,000 rooms.
Revenues from RLC’s industrial and integrated developments division, which accounts for its operations of warehouse facilities, grew 96% to P96.4 million. The company said it intends to build more warehouses to expand its portfolio.
“RLC continues to be optimistic about its growth outlook as it builds a larger and more diversified platform. Our strong fundamentals and solid balance sheet will help us navigate the challenges brought about by the new coronavirus,” RLC President and Chief Executive Officer Frederick D. Go said in the statement.
“As we emerge from the enhanced community quarantine, our priorities are the welfare and wellbeing of our employees, business partners, and patrons,” he added.
Shares in RLC at the stock exchange increased 58 centavos or 4.04% to P14.92 each on Thursday. — Denise A. Valdez, BusinessWorld
SOURCE: BUSINESSWORLD ONLINE
Robinsons Land Corp., the property unit of the Gokongwei Group, plans to launch P20 billion worth of new residential projects this year on expectations of strong demand for residential units both from domestic end-buyers and foreign investors.
Robinsons Land president Frederick Dy said in a message in the 2019 annual report the company’s bullish outlook was mainly driven by solid remittances from overseas Filipino workers, attractive lending rates and the availability of mortgage financing from banks.
The target project launches, however, could change considering the impact of the new coronavirus pandemic on the domestic economy.
Robinsons Land plans to increase the mall leasable space by three percent to 1.62 million square meters with the opening of a mall in La Union and the expansion of Robinsons Place Antipolo and Robinsons Place Dumaguete.
By 2021, the property firm will expand its mall footprint in Metro Manila by opening a premium mall within Bridgetowne, and three new provincial malls in Nueva Ecija, Bataan and Batangas.
The four new developments will add nine percent to it total leasable space to 1.77 million square meters.
For the office sector, Robinsons Land plans to develop five new office projects that will increase net leasable area by 16 percent to approximately 686,000 sq. m. by the end of 2020.
It aims to complete the development of three new office projects that will expand net leasable space by 14 percent to 784,000 sq.m. in 2021.
With the country’s tourism sector booming prior to COVID-19, the Gokongwei-owned property unit was looking to expand the hotel portfolio by increasing the number of rooms by 10 percent to 3,452 with the opening of Summit Hotels Naga, Go Hotels Naga and Go Hotels Tuguegarao in the next 12 months.
The company plans to add 15 percent more keys in 2021 through Westin Sonata, Summit GenSan and Go Hotels San Nicolas to end with 3,957 operational rooms.
Meanwhile, the company’s industrial and integrated developments division plans to triple leasable space to 100,000 sq. m. with the completion of two additional industrial facilities in Muntinlupa and Calamba in 2020. - Jenniffer B. Austria, Manila Standard
SOURCE: MANILA STANDARD
ROBINSONS Land Corp. (RLC) has received the highest credit rating from a local debt watcher for its planned bond issuance of up to P20 billion.
In a disclosure to the stock exchange on Thursday, the Gokongwei-led real estate company said it had been given a “PRS Aaa” credit rating by the Philippine Rating Services Corp. (PhilRatings) for its proposed bond issuance.
The company is looking to issue P10 billion bonds with an oversubscription option of up to P10 billion.
A PRS Aaa credit rating means RLC is expected to have an “extremely strong” capacity to meet its financial commitment. The rating was also given a stable outlook, meaning it is expected to hold for the next 12 months.
PhilRatings said the issue rating was based on RLC’s solid competitive position, healthy liquidity, sound capitalization and solid fundamentals amid the coronavirus pandemic.
“PhilRatings based its assessment on available information and projections at the time that the rating review was performed. PhilRatings shall continuously monitor developments relating to RLC and may change the ratings at any time, should circumstances warrant a change,” it said.
RLC’s net earnings in 2019 climbed 6% to P8.69 billion, driven by a P1.02-billion increase in revenues to P30.58 billion. Its shares at the stock exchange stood at P15.04 each on Thursday, down 44 centavos or 2.84% from a day ago. — Denise A. Valdez, BusinessWorld
SOURCE: BUSINESSWORLD ONLINE