Robinsons Land nets P1.03 B in Oct-Dec

MANILA, Philippines - Property firm Robinsons Land Corp. (RLC) reported lower earnings in the first quarter of its fiscal year, dragged by higher expenses and losses from fire- and typhoon-damaged malls.

In a regulatory filing, the property development arm of the Gokongwei family said its net income sank 13 percent to P1.03 billion in October to December from P1.18 billion a year ago.

Total real estate revenues climbed 19.3 percent to P3.98 billion from P3.34 billion while hotel revenues reached P402 million.

“Aside from (Super) Typhoon Yolanda losses and the Galleria mall fire loss, decrease in interest income by P51.5 million brought further non-operating losses to a high level at P323.1 million resulting to a lower net income for the period,” RLC said.

Gross expenses surged 32 percent to P3.01 billion from P2.27 billion, with real estate cost escalating 24.5 percent due to higher cost of realized real estate sales while general and administrative expenses rose 14.2 percent because of higher commissions, salaries and taxes.

In the first quarter of its fiscal year ending in September, RLC said its Commercial Centers Division accounted for 45 percent of gross revenues, followed by the Residential Division at 38 percent, Hotels Division at nine percent and Office Buildings Division at eight percent.

In particular, combined revenues of its 35 shopping malls nationwide rose 10.2 percent.

“Metro Manila malls led by Robinsons Galleria and Robinsons Place Manila contributed to the growth while most provincial malls also posted decent growth in rental revenues,” RLC said.

The Residential Division’s revenues spiked 38 percent to P1.66 billion from P1.2 billion while the Office Buildings Division’s revenues inched up 0.9 percent to P361.8 million from P358.5 million a year ago.

Lease income is derived from eight office buildings: Galleria Corporate Center, Robinsons Equitable Tower, Robinsons Summit Center, Robinsons Cybergate Centers Towers 1, 2 and 3, Cybergate Plaza and Cebu Cybergate.

The Hotels Division, composed of Crowne Plaza Galleria Manila, Holiday Inn Galleria Manila, Summit Circle Cebu, Summit Ridge Hotel and Go Hotels chain, posted a 0.9-percent increase in revenues to P401.2 million due to high occupancy rates.