ROBINSONS LAND CORPORATION OFFICIAL WEBSITE

Your company, Robinsons Land Corp. (RLC) reported impressive results for the fiscal year ended September 2005, driven primarily by the resilience of the Philippine economy which grew by 5.7% in GNP terms. This was due to growth in the service sectors and steady inflow of OFW remittances. This was achieved despite the political crisis last year, as well as higher fuel prices. A stable peso and low interest rates benefitted the economy and the Philippine real estate industry.

RLC continued its growth trend, with total gross revenues increasing by 9% to PhP5.119 B this fiscal year from PhP4.701 B, on increases in commercial, high-rise and housing

division revenues. EBIT, likewise, posted a 7% growth to PhP1.363 B on more efficient operations. EBITDA was reported at PhP2.615 B from PhP2.313 B, an increase of 13%, and EBITDA margins improved to 51% from 49% last fiscal year. During the fiscal year RLC adopted early the new accounting standards, one of which requires the fair valuation of financial assets and liabilities. This resulted to an additional PhP118 M in net income. Higher revenues and improved profitability resulted in the significant 34% growth of net income to PhP1.233 B in the fiscal year from PhP920 M.

Your company’s financial position remained solid with stronger cash flows and low gearing. Total assets stood at PhP25.859 B, while stockholder’s equity rose to PhP13.494 B from last year’s PhP12.669 B. Capital expenditures of PhP4.225 B was funded through available liquidity and bank borrowings. Gross financial debt to equity ratio improved to 0.15:1 vis-à-vis last year’s 0.18:1.

RLC is among the country’s leading property companies and has consistently enhanced its position over the years by focusing on its core competencies:

• Developing choice locations into highly successful mixed-use property projects;
• Generating steady cash flow streams of rental revenues from its Commercial Centers Division and office rentals from High-Rise Buildings Divisions;
• Developing its land bank for future expansion, thru purchases, joint ventures or long term lease;
• 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
The Commercial Center Division posted positive results on the back of resilient consumer spending. It reported a 12% growth in revenues from PhP2.773 B to PhP3.102 B, due to the impressive take-up of leasable spaces in its malls, including the new malls that opened in Angeles, Pampanga and in Pioneer, Mandaluyong. The average occupancy of all the malls stood at 92%. The Division contributed 61% of the Company’s total gross revenues, with 18 malls in operation and a gross floor area of approximately 1.12 million square meters in Metro Manila and major cities across the country. Higher revenues and operating costs savings due to leaner operations in the division resulted in higher EBIT of PhP1.029 B, an increase of 14% from last year.

The High-Rise Buildings Division realized gross revenues was recorded at PhP1.070 B this fiscal year, a 6%, increase. The completion of its projects Robinsons Place Residences, Galleria Regency and the Bloomfields residential subdivision in Quezon City, led to this increase. The Division has pre-sold most of its projects namely, One and Two Adriatico Place in Manila, Fifth Avenue Place in Fort Bonifacio, One Gateway Place and Gateway Garden Ridge in Pioneer and are just waiting project construction for sales to be realized. There were also three new projects launched last year: Gateway Garden Heights, Mckinley Park Residences and Three Adriatico Place. Market reception was also encouraging for these projects. To date, the division has a total of P3.345 B of unrealized sales. The Division still enjoys stable and recurring lease income from its office property assets in the Galleria Corporate Center, Robinsons Equitable Tower and Robinsons Summit Center. These office buildings have become the top choices of business process outsourcing companies and call centers due to their prime locations and technical design. Thus, rental income increased by 6% to PhP 221 M as all of the office inventory were fully taken up. The Division also completed the construction of Robinsons Cybergate Center Tower 1, a building designed especially for business process outsourcing companies and call centers. Leasable space were immediately taken up and will boost rental revenue in FY2006. The division reported EBIT of PhP 205 M, an increase of 10%.

The Housing and Land Division’s business, grew by another 13%, reporting realized gross revenues of P448 M, due to improved housing demand. The impressive result was due to the strong uptake and higher level of completion of existing projects like Robinsons Vineyard, South Square Village, San Lorenzo Homes, Residenza Milano, Bloomfields Davao, Bloomfields Tagaytay and Davao Highlands. The division’s newly launched residential projects, Rosewood Parkhomes and Fernwood Parkhomes, have been well received by the market and is expected to contribute to realized gross revenues in the future. The division’s EBIT rose to PhP156 M, a 16% improvement from last year.

The Hotel Division generated slightly lower gross revenues of PhP500 M from PhP522 M with new hotel Crowne Plaza Galleria Manila contributing only in the last quarter of the fiscal year. The other hotel properties, Holiday Inn Galleria Manila (formerly Manila Galleria Suites), Cebu Midtown Hotel and Robinsons Apartelle, still enjoyed higher than last year’s occupany rates, ending the year at 72%, 80% and 63%, respectively. Newly opened Crowne Plaza has also been well received. Start up costs and expenses of Crowne Plaza weighed down on profitability of the hotel division as a loss of PhP27M was recorded vs PhP44 M profit in fiscal year 2004.

PLANS FOR YEAR 2006

Your company has the following plans and strategies for each division for the coming fiscal year :

The Commercial Centers Division will focus on providing RLC with stable cashflows from rental revenues. We will continue to expand our mall business to maintain our position as one of the three largest mall operators in the country. For fiscal year 2006, we will complete the expansions of Robinsons Place Lipa, Batangas and Robinsons Place Dasmariñas, Cavite and will increase our gross floor area by approximately 60,000 square meters. We will also commence construction of new malls in Sucat, Parañaque, Dumaguete, Negros Oriental, Tagaytay, Cavite, and Davao. We will continue leverage on our mixed used development model which RLC has pioneered. The mixed use complex undergoing major development is Robinsons Galleria where we will complete the redevelopment of a portion of the mall to be called “West Wing.” We will also commence the redevelopment of Robinsons Ermita. We will pursue new formats and concepts to attract more retail establishments as these proved to be successful in bringing foot traffic into our malls. In fiscal year 2006, we will complete a market bazaar in Novaliches called Nova Stop, a restaurant strip in Dasmarinas called Terraza and additional “al fresco” dining areas in our Lipa mall. Our mall take-ups are also expected to improve with our expanding retail affiliates. This year, we will welcome many new tenants such as Toys R Us, which will anchor our children’s area in our flagship Robinsons Galleria mall. Finally, we will expand our landbank by acquiring choice properties in Metro Manila and highly urbanized areas.

We will remain focused on the lucrative middle-market residential housing in High-Rise Buildings Division. We hope to sustain the momentum by launching at least 3 projects this year, including East of Galleria, a high-rise residential condominium located in Ortigas business district. We are currently studying other real estate products like medium rise residential buildings and town house projects. The Filipinos overseas market in the USA have been the strong supporters of our products and we intend to continue tapping them for our future projects. The Division expects to complete the construction of Robinsons Cybergate Center Tower 2, an office building complex likewise designed for call centers and business process outsourcing companies. The first building is almost leased out and there is robust demand for the second building. A portion of the second building will be made available for lease by the end of FY2006 and the rest will be delivered in the second quarter of FY2007. It will add a gross leasable area of approximately 43,000 square meters.

The Housing and Land Development Division will focus on the middle income market for lots with option for housing, priced at a range of Php600,000 to Php2,000,000. The market for these remained robust, with a total of 1,500 pre-sold units and PhP1.301 billion in gross sales last year. We will step up our efforts to acquire properties via joint venture in key cities where there in big potential for mid-market real estate property sales and it will aggressively tap the Overseas Filipino Workers market in Europe and in the Middle East. We will continue to support the Hotels Division, as we expect sustained improvement in terms of occupancy and profitability from a more upbeat and peaceful local tourism industry.

APPRECIATION

We would like to thank our Shareholders and our Board of Directors for your unwavering trust. We would also like to thank our customers, suppliers and business partners for your support in RLC. Finally, we would like to recognize the efforts of our employees, whose dedication and hardwork allowed us to achieve our goals. The Philippine economy and real estate industry are full of challenges. Your management is confident that we can face these challenges and surpass our previous achievements with all your support.