ROBINSONS LAND CORPORATION OFFICIAL WEBSITE

We are pleased to report that your company, Robinsons Land Corp. (RLC) posted impressive results for the fiscal year ended September 2004. This was driven by the continued improvement of the Philippine economy due to increase in the agriculture and services sectors and steady inflows of OFW remittances. GDP and GNP posted growths of 6.3% and 6.1%, respectively. The stable peso, low interest rates and the peaceful outcome of the presidential election last May 2004, mitigated the concerns on the persistent fiscal deficit, leading to improvements in consumer and investor’s confidence in the economy and the real estate industry.

RLC sustained its growth momentum, with total gross revenues increasing from PhP 4.3 B to PhP 4.7 B this fiscal year. The company’s continuous efforts towards operating efficiency paid off, with EBIT posting a commendable 40% growth to PhP 1.3 B. EBITDA was reported at PhP 2.3 B from PhP 1.9 B, an increase of 23% and EBITDA margins improved to 49% from 44% last fiscal year. Higher revenues and improved profitability resulted in the significant 37% growth of Net Income to PhP 920.2 M in the fiscal year from PhP 670.6 M.

Your company’s financial position remained solid with stronger cash flows and low gearing. Total assests stood at PhP 21.7 B, while Stockholder’s Equity rose to PhP 12.7 B from last year’s PhP 11.9 B. Capital expenditures of PhP 1.8 B was funded through available liquidity. Financial debt to equity ratio improved to 0.18:1 vis-à-vis last year’s 0.31:1.

Through the years, RLC has consistently enhanced its position as one of the country’s leading property developers by focusing on its core strategies:

*Developing choice locations into highly successful mixed-use property projects;
*Generating steady cash flow streams of rental revenues from its Commercial Centers Division;
*Securing choice land bank for future developments through joint-venture and lease options to mitigate large capital requirements;
*Focusing on highly saleable projects for the High-Rise Buildings and Housing and Land Development Divisions and pre-selling these projects to lessen risk and preserve capital;
*Maintaining its strong financial position with low gearing and sustainable cashflows.

REVIEW OF OPERATIONS RLC’s Commercial Centers Division performed well on resilient consumer spending, posting a significant 13% growth in revenues to PhP 2.8 B. This is due to impressive take-up in all its malls, including the 2 new malls that opened in Lipa, Batangas and Cainta, Rizal and the redeveloped East Wing at the Galleria mall. Average occupancy of all the malls stood at 95%. The Division contributed 59% of the Company’s total gross revenues this year. As of the end of the fiscal year, RLC was operating 15 malls and a gross floor area of over a million square meters, in Metro Manila and major cities across the country. Higher revenues also translated to a higher EBIT of PhP 906 M, an increase of 13% from last year.

The High-Rise Buildings Division recorded a 7% increase in realized gross revenues to PhP 1 B. The increase was due to the progress in completion of projects including the upscale Galleria Regency condominium in the Ortigas area, the twin-tower Robinsons Place Residences in Manila and the Bloomfields residential subdivision in Quezon City. The Divisions’ new projects, One and Two Adriatico Place in Manila, Fifth Avenue Place in Fort Bonifacio and One Gateway Place in Pioneer have been substantially pre-sold. Once enjoys strong recurring lease income from its office property assests in the Galleria Corporate have become the top choices of business process ourtsourcing companies and call centers due to their prime locations and technical designs. Rental income increased 54% to PhP 207.8 M from PhP 135 M last year as average take-ups of the office inventory ranged from 94% to 99% in fiscal year 2004.

The Housing and Land Division’s business also benefited from better economic conditions. The division booked PhP 395.1 M in realized gross revenues, a 19% increase, because of strong uptake and higher level of completion of existing projects like Robinsons Highlands in Davao City, Robinsons Vineyard and Southsquare Village in Cavite. The Division’s most recent projects, Forest Parkhomes in Angeles City, Residenza Milano in Batangas City, Highlands Crest, an expansion of Davao Highlands and Hillsborough Pointe in Cagayan de Oro City, have received encouraging initial reception from the market and is expected to contribute to realized gross revenues in the future. The division’s EBIT rose to PhP 135.2 M, a 46% improvement from last year.

The Hotels Division generated slightly slower gross revenues of PhP 521.6 M from PhP 583.7 M, as it now operates lesser number of hotels, due to the closure of Manila Midtown Hotel in May 2003. More importantly, the occupancy rates of operating hotel properties, Holiday Inn Galleria Manila (formerly Manila Galleria Suites), Cebu Midtown Hotel and Robinsons Apartelle, were still above industry averages and have improved over last year’s rates. Holiday Inn Galleria Manila and Cebu Midtown Hotel, ended the year with occupancy rates of 74% and 82% respectively. Strong domestic tourism, improving business conditions and good management have translated to better profitability for the division as EBIT turned positive to PhP 43.9 M in fiscal year 2004.

PLANS FOR YEAR 2005

Your management is determined to achieve better performance for your company in the coming fiscal year. We have outlined the following specific plans and strategies for each division:

Proving the resiliency and stability of the cashflows from rental revenues of the Commercial Centers Division, your company will continue expanding in this business. RLC is now one of leverage off this position with the following specific plans:
*Add 2 to 3 new shopping malls or expand highly successful malls every year. For fiscal year 2005, newly opened malls in the cities of Bacolod, Angeles and Mandaluyong, have brought the total gross floor area to 1.1 million square meters and are expected to boost revenues. Plans are underway to expand Robinsons Place Lipa, Batangas and Robinsons Place Dasmarinas, Cavite.
*Pursue new retail formats and concepts. The Market Bazaar in Lipa and Cainta Malls and the lifestyle center in Galleria’s East Wing and Paseo Iloilo proved to be successful in bringing foot traffic into the malls.

For the High-Rise Buildings Division, the focus will remain in the lucrative middle-market residential housing. After the successful pre-selling activities of One Gateway Place in Mandaluyong and One Adriatico Place in Manila, construction of these residential condominiums have commenced. The sales and marketing team will also focus greater efforts in tapping the Filipinos overseas for residential projects. The Division expects to complete the construction of the first of the two buildings of Robinsons Cybergate Center, an office building complex designed for call centers and business outsourcing companies, in the second quarter of this fiscal year. The two buildings will have a gross leasable area of approximately 66,000 square meters. Serious negotiations are under way with several companies who intended to locate in these buildings.

The strategy employed by the Housing and Land Development Division of remaining in the lower middle income market for lots with option for housing, and pricing these at around the PhP 1 million level, has paid off. It sold an unprecedented 1506 units and hit billion pesos in sales last year. The Division is looking to carry on this strategy, acquiring properties via join-venture in key cities where there are big potential for mid-market real estates sales. It will also venture into the development of upper middle income subdivision projects in Tagaytay City and Davao City in the coming year. Together with the Company’s High-Rise Buildings Division, it will aggressively beef up its sales network to be able to tap the OFW market. The Division’s cashflow remains stron from amortization collections and proper timing of expenditures.

With a more upbeat outlook of the local tourism industry, the Hotels Division expects sustained improvement in terms of occupancy and profitability. The Crowne Plaza Galleria Manila, a 265 room hotel with a grand ballroom with 1,200 seating capacity, will be opened in fiscal year 2005. The Crowne Plaza hotel is expected to be the choice venue for important corporate meetings and conferences as well as for private events and functions. Both the Crowne Plaza and Holiday Inn Galleria Manila are under the management of the Intercontinental Hotels Group. For its part, the Cebu Midtown Hotel is expected to reap the benefits of a continuing renovation and refurbishment program.

APPRECIATION

We would like to extend our sincerest appreciation to our Shareholders and our Board of Directors for your continuing trust. Our gratitude also to our customers, suppliers and business partners for you unwavering faith in RLC. We also acknowledge the efforts of our employees, whose dedication and hardwork allowed us to achieve our goals.

The Philippine economy and real restate industry are not without challenges. With your support, your management is confident that we can hurdle these challenges and surpass our previous achievements.