MANILA, Philippines — Robinsons Land Corp., the listed property arm of the Gokongwei Group, expects financial losses from the temporary closure of its malls and hotels during the Luzon-wide enhanced community quarantine.
The quarantine, imposed last March 15, is expected to end on May 15.
“In full cooperation with the government’s directives, RLC temporarily closed some of its mall and hotel properties during the quarantine. Management believes, however, that RLC’s other business segments will be able to compensate for any financial loss that the company may incur during the quarantine period,” RLC said.
In addition, RLC said it is still able to collect rent from operational tenants providing essential goods and services as well as secure bookings for its hotels from institutional clients looking for temporary accommodation for their employees.
Moving forward, RLC expects to survive the impact of the pandemic due to its solid competitive position, healthy liquidity and sound capitalization.
“These factors are seen to support the company against the short-term impact of the pandemic, and assist recovery in the medium- to long-term period. It is to be noted, however, that such recovery is also dependent on how the country’s economy as a whole, is able to weather the contagion,” said local debt watcher PhilRatings in a recent report on RLC.
As of Dec. 31, 2019, RLC operated 52 shopping malls with gross floor area (GFA) of three million square meters (sqm).
System-wide occupancy rate was at a high 94.4 percent.
RLC believes that its competitive strength lies in its mixed-use retail, commercial and residential development.
RLC aims to achieve a balance tenant mix for its commercial centers, while leveraging on the brand equity and drawing power of its affiliated companies in the retail trade business