RLC sees higher share of investment portfolio

MANILA, Philippines —  Property giant Robinsons Land Corp. (RLC) expects the share of its investment portfolio in its revenue mix to rise further over the next two years as it continues to beef up its recurring-income businesses.

RLC chief financial, risk and compliance officer Kerwin Max Tan said the company is targeting an 80 percent investment portfolio and 20 percent development portfolio mix.

In the first half, the investment portfolio, which includes malls, offices, hotels and logistics assets, accounted for 72 percent of RLC revenues, while the development portfolio, which includes residential projects, contributed 28 percent.

“Right now we’re 72-28, so we’re not far. Maybe the next two years we’ll be about 80-20,” Tan said.

Tan said the group intends to focus on its recurring-income assets, which are part of its investment portfolio.

“We believe that recurring is the way to go. But of course, we’re not eliminating the residential portion because each asset complements the other,” Tan said.

“We also need the residential portion to complement our malls, our offices. So I think the 80-20 mix would be our target,” he said.

The investment portfolio remained RLC’s primary earnings driver in the first six months, delivering stable, recurring income streams. Revenues grew by seven percent year-on-year to P18.4 billion.

The malls segment sustained its growth momentum in the second quarter, while the office portfolio generated stable recurring earnings.

The hotels and logistics segment also continued to deliver robust growth during the period.

RLC’s development portfolio, meanwhile, saw revenues rise by 19 percent to P7 billion, supported by improved project execution and revenue recognition from its residential developments.

Last year, RLC unveiled its Vision 5-25-50 roadmap that aims to deliver P25 billion in net income by its 50th anniversary in 2030.

RLC is targeting aggressive expansion, aiming to increase mall gross leasable area by 50 percent, office space by 50 percent, hotel room keys by 25 percent and double logistics capacity by 2030.