Robinsons Land reports slight drop in net profit

MANILA, Philippines - Robinsons Land Corp., the property concern of the Go-kongwei family’s listed flagship firm JG Summit Holdings Inc., reported a slight drop in net income for the first quarter of its fiscal year ending September 2009, mainly due to increased costs, lower contributions from its hotel operations and a decline in interest income.

In a financial report filed with the SEC, RLC said net income for the period October to December 2008 reached P679.68 million compared with the previous level of P681.9 million.

Revenues went up by 2.5 percent to P2.38 billion with real estate sales rising five percent to P1.98 billion.

Even with controlled general and administrative expenses, real estate costs increased by 17 percent because of higher realized costs from condominium units and higher construction costs. Interest income fell 21.6 percent to P113.1 million.

The commercial centers division contributed 42 percent or P1 billion of total revenues, posting an increase of eight percent from the year ago figure due to significant rental increments contributed by the Galleria Mall in Ortigas, Robinsons Manila, Robinsons Pioneer in Mandaluyong City and newly opened malls in Cabanatuan, Nueva Ecija and Pulilan, Bulacan.

RLC’s high-rise residential buildings division, on the other hand, accounted for 30 percent or P703 million of the company’s gross revenues, largely coming from recently launched projects such as Adriatico Place 2 and 3, East of Galleria, Otis 888, Gateway Garden Heights and Woodsville Viverde. Adriatico Place 1, Fifth Avenue Place and Bloomfields.

The office buildings division chipped in 11 percent or P253 million of total revenues or an increase of 37 percent from the year earlier’s P184 million. The growth was attributed to higher rentals from Cybergate Center 3 which started regular operations in April 2008.

Lease income is also derived from six office buildings – Galleria Corporate Center, Robinsons Equitable Tower, Robinsons Summit Center and Robinsons Cybergate Center Towers 1, 2 and 3.

Revenues from the hotels division declined five percent to P281 million, accounting for 12 percent of total revenues. The drop was due to lower occupancy rates in December.

Meanwhile, the housing and land development division through its two subsidiaries Robinsons Homes Inc. and Trion Homes Development Corp., recorded a 19-percent growth in sales to P137 million due to higher percentage completion of several projects.

As of Dec. 31, 2008, RLC had total assets of P41 billion and stockholders’ equity of P24 billion.

Loans payable rose 10 percent due to additional short-term borrowings from a local bank amounting to P687 million.