MANILA, Philippines — Robinsons Land Corp. (RLC), one of the country’s leading real estate companies, posted a 19 percent net income growth in the first three month of 2019 to P1.84 billion from P1.55 billion in the same period last year.
In a report to the Philippine Stock Exchange, RLC said its consolidated revenue for the period was up by seven percent to P6.78 billion from P6.36 billion.
The sustained growth was driven by the steady performance of the investment portfolio, which rose by 13 percent to P4.81 billion led by the Office Buildings Division with the highest revenue growth of 30 percent. The Malls Division, which contributes 46 percent of the consolidated revenue, has a stable revenue growth of nine percent.
“Robinsons Land continues to post strong earnings from organic growth as well as from our expansion programs. We look forward with much enthusiasm to the improvement of our performance in the coming months.”, said RLC president and CEO Frederick Go.
RLC’s malls posted a steady revenue growth of nine percent to P3.14 billion, driven by strong rental income all across the existing malls coupled with the contributions from four new malls opened last year namely, Robinsons Place Ormoc, Robinsons Place Pavia, Robinsons Place Tuguegarao and Robinsons Place Valencia. Meanwhile, same mall rental growth grew by seven percent. Total mall leasable space currently stands at 1.5 million sqm with over 9,000 retailers.
The Office Buildings Division registered the highest growth in RLC’s investment portfolio as revenue increased by 30 percent to P1.12 billion from P0.865 billion in the same period last year, mainly because of the successful leasing activities in new buildings namely, Cyberscape Sigma, Cyberscape Gamma, Exxa Tower and Zeta Tower. The Office Buildings division now has 20 operational sites with a total net leasable area of 523,000 sqm.
The Hotels and Resorts Division posted a 10 percent increase in revenue to P521 million, driven by strong performances of Summit Galleria Cebu and Summit Hotels Magnolia together with the contributions from two new hotels opened last year, namely Summit Hotels Tacloban and Go Hotels Iligan. The company has soft opened Dusit Thani in Mactan Cebu last March.
On the other hand, RLC’s Residential Division recorded seven percent lower revenue to P1.97 billion mainly because of timing of revenue recognition. RLC’s sales take-up was steady at P3.7 billion for the quarter. In the coming months, the Residential Division expects to launch Phase 2 of Sapphire Bloc, the third tower of Galleria Residences Cebu, as well as projects Cirrus and Sync communities in Pasig City.
Overseas, the Chengdu Ban Bien Jie project has seen significant progress in a short period of time. Pre- selling has commenced for the residential high-rise apartments of Phase 1. To date, all 795 condominiums units have been booked, exhibiting the international expertise of RLC. The company expects that recognition of revenues from the Chengdu project will take effect this year.