Robinsons Land aims for robust earnings

Unlike other property companies, Robinsons Land Corp. (RLC) sees the year 2001 as a springboard for further growth amid the still depressed state of the real estate sector, as it banks on its core competencies to aim for a robust 25-30 percent growth in its earnings for the current fiscal year.

RLC president and CEO James L. Go told reporters yesterday after the company’s stockholders meeting that based on its first quarter performance, RLC is on track to achieve a minimum 20- percent growth in revenues and income this year.

Go said RLC’s revenues went up 20 percent while profits improved by 35 percent during the first three months of 2001.

For the fiscal year ending September 2000, RLC’s net income rose a significant 17 percent to P674 million on revenue growth of 16 percent to P3.02 billion. Leading the growth in revenues and income were the rentals and leases from the anchor commercial centers, occupancy in its high-rise buildings, and the strong take-up of its middle class housing units.

Only the hotels division contributed lower earnings to RLC’s business as the country’s tourism industry suffered from the economic crisis and the negative image projected abroad as a result of the Mindanao kidnappings last year.

Moreover, Go said stiff competition from new entrants, the expansion of hotels in the major business districts, and the aggressive tourism marketing campaigns by neighboring Southeast Asian countries significantly weighed down on the company’s hotel operations as its occupancy rate dropped, causing a 7.4-percent decline in revenues to P745.65 million.

"We are optimistic that the renewed vigor and aggressive marketing of the Department of Tourism will aid the recovery of the industry," Go said. RLC is also banking on the completion of the 260-room Galleria Regency next year which is expected to strengthen its leadership as the country’s largest domestic hotel owner and operator.

The property development arm of taipan, John Gokongwei’s JG Summit Holdings, RLC is presently embarking on a massive P10-billion investment spree to complete eight new malls, three high-rise buildings and residential communities in two years’ time.

Close to half of that amount will be poured into the construction and development of major undertakings that include six mall complexes, high-rise buildings, as well as a chain of wholesale supermarkets and convenience stores.

The commercial centers division remained as the company’s largest income source with gross rental revenues surging 17.4 percent to P1.28 billion last year, anchored on rental improvements from its shopping centers in Ortigas, Manila, Imus and Bacolod.

In addition, RLC opened a mid-sized mall in Los Baños, Laguna and redeveloped its Cebu mall. In the pipeline are six more Robinsons malls – San Fernando, Pampanga; Pasig; Iloilo; Novaliches; Lipa, Batangas; and Sta. Rosa, Laguna.

Other prime objects in the works are the 33-story Galleria Regency; the 37-story JG Summit Center office condominium in Ayala; the 38-story twin tower residential condominium in Ermita; and Bloomfields, a mid-range residential subdivision in Novaliches.

Its housing projects under Robinsons Homes and Trion Homes include sites in Antipolo; Dasmariñas, Cavite; Gen. Trias, Cavite; Davao City; Tanza, Cavite and Quezon City. – Conrado Diaz Jr.