RLC’s Q2 EBIT rose by 27%
Robinsons Land Corporation (RLC), a leading real estate and property developer in the country, posted strong double digit growth in the second quarter of its current fiscal year, recording an operating income of P1.85 billion, a increase of 27% versus the same quarter last year. Revenues for the second quarter grew by 20% at PhP 4.89 billion with EBITDA rising 23% to finish at PhP 2.61 billion.
The solid growth was a result of the strong performance of each of its business units in the second quarter with EBIT of the commercial centers division increasing by 13%, the office buildings division by 45%, the residential division by 53%, and the hotels division by 24%.
According to RLC president Frederick Go, “the investments made by the company in previous years are now generating returns. We remain positive on the outlook of our core businesses.”
RLC’s total company revenues for the 6 months ending March 2015 were up by 14% at PhP9.70 billion compared to previous year’s PhP8.46 billion. EBITDA grew by 17% to PhP 5.19 billion and EBIT increased by 17% to Php 3.68 billion.
For the six month period, the commercial centers division generated 46% or PhP 4.45 billion of the Company’s revenues, posting a growth of 12%. Supporting this growth are 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, as well as the new mall opened in the first quarter of the current fiscal year, Robinsons Place Las Piñas. The office buildings division contributed 10% or PhP 991 million of the Company’s revenues, a 36% increase. This marked growth is anchored on the lease income of its 10 office buildings, notably Cyberscape Alpha and Cyberscape Beta which were opened in the Ortigas central business district (CBD) during FY14, now having lease out rates of 100%. The hotels division generated 9% or PhP 887 million of Company revenues, up by 12% versus the same period last year. RLC opened two new hotels this fiscal year, Go Hotels Butuan in the first quarter, and Summit Hotel Magnolia in the second quarter, bringing a total of 15 hotels to its portfolio. The residential division generated 35% or PhP 3.4 billion of the Company’s revenues, an increase of 14%, with sales take-up ending at PhP 3.8 billion as of the second quarter.
RLC’s financial position remains stable, with a debt to equity ratio of 0.44:1 as of March 31, 2015, while net debt to equity stood at 0.29:1 for the same period.
Last February 2015, the Company issued fixed rate bonds with an aggregate amount of PhP 12 billion. The bonds have a fixed interest rate equivalent to 4.8% per annum for the 7-year tenor, and 4.9% for the 10-year tenor. These were record lows for the Company.
In the last shareholders meeting, a cash dividend of PhP 0.36 per share was declared for all shareholders on record as of May 14, 2015.
For this year, RLC plans to expand its mall gross leasable area with the opening of Robinsons Place Las Piñas last October 2014 and expects to open later in the year its first mall in Antique, as well as expand Robinsons Place Novaliches. For the office buildings division, RLC is currently completing construction of Tera Tower, the first office building in its upcoming mixed-use development in Quezon City called Bridgetowne. Another project under construction is the Bonifacio Summit Center which will be located along Lawton Avenue in the Bonifacio Global City. To capitalize on the growth of the BPO industry, RLC plans to launch 2 more office buildings this year: Giga Tower in Bridgetowne, and the Cyberscape Gamma Building in the Ortigas CBD. For the residential division, it targets to launch PhP 6 to 12 billion worth of projects across all 4 brand segments. One of the most important recent developments for the Company is its agreement with Starwood Hotels and Resorts Worldwide, Inc. for The Westin Manila Sonata Place, and The Residences at The Westin Manila Sonata Place, a 5-star hotel and a premium residential condominium, which will be located in the heart of the Ortigas center.