RLC 9M EBIT grows by 17% nets Php5.6 billion
Robinsons Land Corporation (RLC), one of the leading real estate and property developers in the Philippines, posted solid EBIT growth of 17% to Php5.6 billion for the nine months ending June 30, 2015. This growth was driven by both the strong performance of its investment portfolio or recurring revenue businesses as well as its residential segment. RLC’s consolidated revenues were up by 12% to Php14.6 billion. EBITDA recorded a 16% growth ending at Php7.9 billion for the nine months ending June 2015. The investment portfolio accounted for 82% of EBITDA. Net income also increased by 12% to Php4.4 billion.
The commercial centers division generated 46% of the company’s total revenues, growing 12% over the last fiscal year to Php6.8 billion. EBIT in the third quarter increased versus the same period last year by 15% resulting to a total EBIT growth of 10% for the nine months. This was driven by the six new malls opened in FY14, namely Robinsons Place Butuan, Robinsons Town Mall Malabon, Robinsons Place Malolos, Robinsons Place Roxas, Robinsons Place Santiago and Robinsons Place Antipolo, the new mall opened in the first quarter of the current fiscal year, Robinsons Place Las Piñas as well as the expansion of Robinsons Novaliches which opened in May 2015.
Cyberscape Alpha and Cyberscape Beta, the new office buildings opened in the Ortigas central business district last 2014, strongly supported growth of the office buildings division. The office buildings division contributed 11% of total RLC revenues at Php1.6 billion, increasing by 40% compared to same period last year generated from the 10 office buildings in its portfolio. EBIT growth in third quarter was 45% leading to a total EBIT growth of 40% for the nine months.
The hotels division brought in 9% of company revenues at Php1.3 billion, up by 13% from 14 hotel properties. EBIT for the third quarter increased by 52%, resulting to a total EBIT growth of 37% for the nine months. Supporting this growth were the new hotels opened in the fiscal year, Go Hotels Butuan and Summit Hotel Magnolia, as well as increased growth from existing Go Hotels branches.
The residential division generated 34% of RLC’s revenues with Php5.0 billion, steady with a 5% growth from the previous year. EBIT for the third quarter rose by 5% as well with a total EBIT growth of 14% for the last nine months.
The financial position on the company remains solid. The company recorded a debt to equity ratio of 0.41:1 as of June 30, 2015, while net debt to equity was at 0.38:1.
This year RLC opened Robinsons Place Las Piñas in October 2014, Robinsons Place Antique in July 2015 and expanded Robinsons Novaliches in May 2015. RLC will also be opening its flagship mall in Cebu, Robinsons Galleria Cebu, this coming 06 November 2015. Currently under construction are new malls in Jaro, General Trias and Tagum as well as an expansion in Ilocos Norte. For the office buildings division, RLC has fully leased out and completed the first office building for its mixed-use development in Quezon City called Bridgetowne, set to open in FY16. Other office buildings lined up are the Bonifacio Summit Center in the Bonifacio Global City, Exxa Tower in Bridgetowne and Cyberscape Gamma in the Ortigas central business district. A number of residential projects are also in the pipeline such as Escalades North in Quezon City, Woodsville Residences in Paranaque City, and Galleria Residences in Cebu. Lined up under the hotels division are Go Hotels Davao as well as Summit Hotel Maxilom in Cebu. A significant development for both the residential and hotel divisions is the agreement with Starwood Hotels and Resorts Worldwide, Inc. for The Westin Manila Sonata Place, and The Residences at Westin Manila Sonata Place, a 5-star hotel and a premium residential condominium, which will be located in the heart of the Ortigas center.