Robinsons Land net income up 44% to P607.8M in 3 months

Buoyed by robust lease revenues from its commercial centers and high-rise buildings divisions, Gokongwei-owned property firm Robinsons Land Corp. (RLC) reported a 44 percent jump in its net profit for the first quarter of its fiscal year ending September 2007.

In a financial report filed with the Securities and Exchange Commission, RLC said net income amounted to P607.79 million in Oct-Dec. 2006 from P422.59 million a year earlier. Revenues, on the other hand, reached P2.07 billion for the period October to December 2006, 20 percent higher than the previous level’s P1.72 billion.

Income from operations likewise increased by 20 percent to P740 million.

Of the total revenues, P1.79 billion came from real estate operations while the balance of P279.19 million came from hotel operations.

RLC said the commercial centers division registered revenues of P830.8 million or 40.2 percent of total.

Lease revenues rose three percent to P800 million, mainly due to rental escalations and strong rental income from call centers.

The high-rise buildings division, on the other hand, contributed P837 million in revenues, up 61 percent from P521 million due to recognition of increased realized revenues from its projects, particularly One Adriatico Place and Fifth Avenue Place.

Recurring lease income from its four office buildings – Galleria Corporate Center, Robinsons Equitable Tower, Robinsons Summit Center and Robinsons Cybergate Center Tower 1, amounted to P126 million or an increase of 59 percent from P79 million a year earlier.

Meanwhile, the hotels division, a major contributor to RLC’s recurring revenues, pumped in revenues of P279 million, 27 percent higher than the P219 million registered the previous level.

The growth was attributed to revenues coming from Crowne Plaza which opened in July 2005.

The company’s two other hotels and apartelle continue to register satisfactory occupancy rates.

The housing and land division, through its housing subsidiaries Robinsons Homes Inc. and Trion Homes Development Corp., realized gross revenues of P120 million or an increase of 10 percent from the previous year’s P109 million due to higher units sold and project completion of ongoing projects.

RLC said real estate cost and expenses went up 28 percent to P778 million due to higher units sold and to higher project completion at its high-rise division, particularly Fifth Avenue Place and One Adriatico Place.

As of end 2006, RLC had assets of P37.2 billion and stockholders’ equity of P20.3 billion.

Increase in cash and cash equivalents was due to proceeds from the follow-on offering of 450 million shares in Oct. 2006.