Robinsons Land net income up 10% to P3.59B in 2010

MANILA, Philippines - Gokongwei-owned Robinsons Land Corp. (RLC) posted a net income of P3.59 billion in its fiscal year ending September 2010, up 10 percent from the previous period, on higher revenues particularly from its hotel operations.

In a financial report submitted to the Philippine Stock Exchange, RLC said net earnings growth would have been higher at 13 percent had the P103-million gain from an interest rate swap transaction last year had been excluded.

Revenues rose five percent to P11.3 billion while EBITDA was up eight percent to P6.41 billion. Of the total revenues, P9.45 billion came from real estate while P1.15 billion came from the hotel business, which was 11.6 percent higher than the previous year’s contribution of P1.03 billion.

Earnings per share climbed 10 percent to P1.31 from P1.19 a year earlier.

The commercial centers division accounted for P5.74 billion of real estate revenues, representing a 36-percent increase from P4.21 billion a year ago. The growth was attributed to newly opened malls Robinsons Place General Santos, Robinsons Ilocos Norte, Robinsons Place Dumaguete and Cybergate Cebu.

Rental escalations and strong take-up of leased areas of the company’s mall space after renovation and expansion work of existing malls increased the rental revenue by 7.74 percent.

Revenues from the residential division fell 26 percent to P3.22 billion due to lower construction completion.

On the other hand, the office buildings division chalked in revenues of P1.18 billion, up six percent from P1.11 billion, on new office space available for lease in Robinsons Cybergate Towers 3 and completion of Cybergate Plaza.

The hotels division, a major contributor to the company’s recurring revenues, contributed P1.15 billion to total revenues, an increase of 11 percent from P1.04 billion principally due to the opening of Summit Ridge Hotel in Tagaytay and Go Hotel in Mandaluyong City.

The average occupancy rates of the company’s hotels are 75 percent for Crowne Plaza Manila Galleria, 76 percent for Holiday Inn Manila Galleria, 56 percent for Cebu Midtown Hotel, 36 percent for the Summit Ridge Hotel and 73 percent for the newly opened Go Hotel.

As of end-September 2010, RLC’s total assets stood at P53.1 billion, up three percent from P51.4 billion a year earlier.