Robinsons Land Corp. (RLC), one of the Philippines’ leading real estate company recorded a 40% YoY net income growth in 2018 to PHP8.23 billion from PHP5.9 billion in the same period last year.
RLC’s CY2018 consolidated revenue posted a 31% YoY increase to PHP29.44 billion from PHP22.52 billion, while overall EBITDA grew by 30% to PHP16.20 billion from PHP12.48billion in the same period. The robust growth was driven by sustained performance of the investment portfolio which rose by 14% to PHP18.16 billion driven by malls and offices divisions and the robust performance of the development portfolio which surged by 72% to PHP11.28 billion due to a remarkable revenues recognized from sale of residential units coupled with the sale of institutional lots to our joint venture companies with the international property developers.
“2018 has been a banner year for Robinsons Land as both our investment and development portfolios saw robust earnings growths driven by key business strategic initiatives and strong demand from our customers and buyers,” said RLC President and CEO Frederick Go.
The Malls Division which contributed 41% to the Company’s total revenues, ended 2018 with a healthy growth of 11% to PHP11.94 billion with EBITDA of PHP7.67 billion up by 9% due mainly from strong rental income and the openings of four new malls namely, Robinsons Place Ormoc, Robinsons Place Pavia, Robinsons Place Tuguegarao and Robinsons Place Valencia in Bukidnon. The division has reached a milestone by reaching more than 50 malls last year all across the country. Last December, RLC has opened its 51st mall, Robinsons Place Pavia in Valencia Bukidnon bringing total mall leasable space to 1.5m sqm.
The Offices division now has 20 operational sites with a total net leasable area of 523,000 sqm. The division registered the biggest growth in our investment portfolio with a revenue increase of 26% to PHP4.11 billion from the previous year’s PHP3.27 billion mainly due to rental escalation and revenue contribution of the office buildings completed in 2017 driven by the continuous growing IT-BPM industry. Meanwhile, EBITDA grew by 22% to PHP3.58 billion
The Company is undertaking a massive buildup of its Hotels and Resorts Division organization to allow it to compete in the very challenging and crowded segment. The division was saddled by the weaker sales of some of its properties, pre-operating expenses of new and upcoming hotels, as well as expected higher overhead in the head office. Revenues increased by 5% to PHP1.98 billion but EBITDA dropped by 7% to PHP673 million versus PHP724 million in 2017.
Last year, the warehouse business under IID Division has turnover its first logistic facility located in Sucat Muntinlupa with a total leasable space of 33,000 sqm. It registered a revenue of PHP135 million and an EBITDA of PHP22 million.
RLC’s residential division posted a robust growth of 33% with realized revenues amounting to PHP8.69 billion while EBITDA increased by 27% to PHP2.31 billion in 2018. Sales take-up surged by 49% YoY to PHP15.3 billion driven by new project launches in 2018 and benefitted from the influx of both domestic and overseas buyers. IID’s development segment which focuses on selling of commercial lots registered PHP2.59 billion in revenues with EBITDA of PHP1.94 billion.
In overseas, the China project has seen significant progress in just a short period of three years. Pre-selling has commenced for the residential high-rise apartments of Phase 1. To date, 759 of 795 units or over 95% of the condominiums has been booked. Sales of the villas are expected to follow soon. RLC has shown its international expertise through the good execution of the project so far. The Company expects that recognition of revenues from the Chengdu project will take this next year.
RLC have spent PHP 23.4 billion of our capital expenditure (CAPEX) budget for the Philippine operations for the development of malls, offices, hotels and warehouse facilities and acquisition of land.
Currently RLC has 754 hectares of land bank all across the Philippines.