Robinsons Land posts 4% income growth to P3.27 billion

MANILA, Philippines - Robinsons Land Corp. (RLC), the property unit of Gokongwei holding firm JG Summit Holdings Inc., reported a four-percent growth in consolidated net income for its fiscal year ending September 2009 to P3.27 billion, on revenues of P10.73 billion.

“RLC’s various business units managed to outperform because of our deep understanding of the market, commitment to operational efficiencies and a healthy balance sheet,” said Frederick Go, the company’s president and chief operating officer.

In a financial report submitted to securities regulators, RLC said its Commercial Centers Division registered revenues of P4.21 billion, 14 percent higher than in the same period a year earlier mainly due to the newly opened malls, specifically Robinsons Place Tacloban, Robinsons Cabanatuan, Robinsons Pulilan and Robinsons Place Davao. Significant rental growth also came from Robinsons Place Manila, Robinsons Place Iloilo, Robinsons Sta. Rosa Market and Robinsons Otis.

Go said the Commercial Centers Division, with a total of 29 malls nationwide, remains one of the company’s top growth drivers with a contribution of 39 percent of total revenues. Enterprise-wide average occupancy rate for the malls remained steady at 93 percent.

The Office Buildings Division, a leading provider of space to voice-based and non-voice BPOs in the Philippines, pumped in revenues of P1.1 billion, representing a 26-percent increase over the same period a year ago. This increase was due mainly to new office space availability in Robinsons Cybergate Towers 2 and 3. It accounted for 10 percent of total revenues.

RLC’s Hotel Division, on the other hand, contributed P1.04 billion, lower than the P1.14 billion registered the prior year, mainly due to the global travel slowdown. It, however, successfully introduced its Summit Hotel Brand with last year’s opening of the premier 108-room Summit Ridge Hotel Complex in Tagaytay City. The new hotel enjoys a magnificent and commanding view of Taal Lake and the entire Tagaytay ridge. The complex includes a wide promenade and a top-notch learning facility. 

Slated for completion by the second quarter of the year is its first budget hotel chain under the Go Hotels brand with the initial site located at Robinsons Pioneer Cybergate Complex.

The Residential Division, meanwhile, registered gross revenues of P4.37 billion, mainly from the progress of construction completion in projects such as McKinley Park Residences, East of Galleria, Gateway Garden Heights, Otis 888 Residences, Gateway Garden Ridge and Fifth Avenue Place. Though the division’s realized revenues contracted 20 percent, it remains a major contributor to the company’s top line with a share of around 41 percent of total revenues.

During the period under review, RLC successfully launched three residential condominium projects: the second tower of the iconic Sonata Private Residences located in the Ortigas Business Center, the first tower of the The Magnolia Residences in New Manila, Quezon City and the first tower of the country’s first and only designer residences, Signa Designer Residences, in a tie-up with Security Land Corp. in Makati.

The Housing Division, meanwhile, posted revenues of P560 million. It launched five new projects, including provincial residential subdivisions and low-to-mid-rise residential communities in Metro Manila.

Going forward, RLC has segmented its residential business into four brand categories – the Luxuria Portfolio, Robinsons Land, Robinsons Communities, and Robinsons Homes. The company said this segmentation will allow its various divisions to focus on their respective markets and enable them to better serve their customers.

Go said the company remains committed to the industry, and intends to launch several new and expansion projects under the various brands.

As of end-September last year, RLC’s assets stood at P51.48 billion or an increase of 27.7 percent from P40.31 billion, mainly due to two successful bond offerings totalling P10 billion.