Robinsons Land Corporation (RLC), one of the leading real estate and property developers in the Philippines, posted strong net income growth of 18% to Php1.65 billion for the first quarter ending December 31, 2015 (Q1FY2016) from PhP1.40 billion in the same period last year. RLC‘s consolidated revenues increased by 13% to PhP5.39 billion. EBITDA rose by 16% to PhP3.01 billion, driven by the growth of its investment portfolio or its recurring revenue business which accounted for 83% of the company’s EBITDA, as well as its residential business. EBIT rose by 20% to PhP2.20 billion in Q1FY2016.
RLC’s commercial centers division generated 46% of the company’s total revenues, posting a 13% revenue growth to PhP2.48 billion in Q1FY2016 from PhP2.20 billion in the same period last year. This was driven by the steady same mall rental revenue growth of 7% as well as the contribution of the newly opened malls namely, Robinsons Place Antipolo, Robinsons Place Las Pinas, Robinsons Place Antique, Robinsons Novaliches expansion and Robinsons Galleria Cebu. The division’s EBIT rose by 13% and EBITDA grew by 10%. As of December 31, 2015, RLC had a total of 41 malls nationwide.
The office buildings division contributed 12% to total company revenues and posted the highest revenue growth at 40% in Q1FY2016 to PhP655.3 million from PhP467.2 million in the same period last year. RLC’s newest office building, Tera Tower, as well as Cyberscape Alpha and Cyberscape Beta contributed to the strong growth of the division being 100% leased out as of December 31, 2015. The division’s EBIT expanded by 47% and EBITDA was up by 37% for the period. As of December 31, 2015, the division had a total of 11 completed office buildings.
The hotels division generated 9% of total company revenues or PhP497.9 million for the period, posting an 11% increase compared to the same period last year with contribution from Summit Hotel Magnolia and Go Hotels Butuan which it opened in FY2015. The division’s EBIT increased by 17% and EBITDA grew by 14%. As of December 31, 2015, RLC had a total of 14 hotel properties.
RLC’s residential division contributed 33% or PhP1.75 billion to the company’s revenues, an increase of 5%. Both EBIT and EBITDA of the residential division grew by 17% in Q1FY2016 from the same period last year.
The company’s balance sheet remains solid. Consolidated assets stood at PhP111.7 billion as of December 31, 2015, with a net debt to equity ratio of 0.51:1.
This fiscal year, RLC plans to grow its mall gross leasable area with the opening of 4 new malls and the expansion of one existing mall, all located in fast-growing cities in the country. Robinsons Galleria Cebu had its grand opening last December and other malls scheduled for opening this calendar year are in General Trias, Cavite; Jaro, Iloilo; Naga, Camarines Sur; Iligan, Lanao del Norte and Tagum, Davao del Norte as well as an expansion for Robinsons Ilocos Norte. For its office buildings division, it is completing construction of office developments in Cebu and Ilocos. Given the robust growth of the BPO industry, it also has in the pipeline Cyber Sigma in Bonifacio Global City; Exxa Tower in Bridgetowne, Quezon City; and Cyberscape Gamma in the Ortigas CBD. For the hotels division, it will expand its Go Hotels brand in Davao. For the residential division, RLC is prepared to launch up to approximately Php15 billion worth of project launches in sales value across all four of its residential segments though dependent on market conditions, including The Residences at The Westin Manila Sonata Place which will be located at the heart of the Ortigas Center.