Robinsons Land sees P3.88-B net income

MANILA, Philippines -  Robinsons Land Corp., the property arm of listed flagship firm JG Summit Holdings Inc. of taipan John Gokongwei, is eyeing a net income of P3.88 billion for its fiscal year ending September this year, seven percent higher than the P3.6 billion recorded the same period in 2010.

In a filing with the Philippine Stock Exchange, RLC said revenues are seen to hit P12.25 billion or an increase of 8.4 percent from the previous level of P11.3 billion. The bulk of revenues will still come from the company’s shopping mall operations followed by residential development, office buildings and hotels.

Revenues from commercial centers are forecast to grow 8.19 percent to P6.21 billion from P5.74 billion. The residential division is expected to contribute P3.59 billion in revenues while revenues from office buildings and hotels are seen to reach P1.24 billion and P1.21 billion, respectively.

EBITDA is likewise seen to increase to P6.97 billion from P6.41 billion.

RLC is embarking on an aggressive expansion over a two-year period beginning this year with a total programmed capital budget of P30 billion, the highest ever in the company’s history. The company is likewise setting aside P11 billion for proposed land acquisitions in 2010 and 2011 to ensure long-term growth.

RLC is one of the three companies that is vying for the 103-hectare Food Terminal Inc. complex in Taguig City that will be auctioned off by the government possibly in the second half this year.

Funding for the company’s massive expansion will partly come from a proposed one for two rights offering which will generate as much as P13.57 billion.

The company will be issuing up to 1.36 billion common shares to stockholders of record as of March 30, 2011 at P10 apiece.

The offering, which will run from April 11 to 15, will be handled by ATR Kim Eng Capital.

The shares to be issued will come from a planned capital hike from P3 billion to P8.2 billion, of which 25 percent or P1.3 billion will be subscribed and at least 325 million will be paid by way of the stock rights offering.

Among the new malls slated for construction this year are in Pangasinan, Palawan, New Manila and Cebu.

RLC plans to put up a total of 30 Gohotels in and outside Metro Manila over a five-year period. Programmed for opening this year are in Bacolod and Dumaguete. The next sites will rise in Palawan, Iloilo, Cebu, and Tacloban for 2012 and Pangasinan, Ilocos Norte, Zamboanga, Batanes, and Gensan in 2013.

Plans also include the construction of two new office buildings in the Ortigas Central Business District.

RLC is also studying the possibility of expanding overseas, particularly in China where the Gokongwei family already has a shopping center.