Robinsons Land reports 17% net income hike in October-December

MANILA, Philippines - Robinsons Land Corp., the property arm of taipan John Gokongwei’s flagship firm JG Summit Holdings Inc., reported a 17-percent rise in net income in the first quarter of its fiscal year ending September 2011 on strong growth across all business divisions.

In a financial report submitted to the Philippine Stock Exchange, RLC said net profit amounted to P1.01 billion for the period October to December 2010 compared with P868.71 million the previous level. This translated to earnings per share of P0.37 from P0.32 a year before.

Gross revenues (including interest income of P173.17 million) reached P3.18 billion, up 17.3 percent from the year earlier figure. EBITDA likewise went up 12 percent to P1.79 billion.

Frederick D. Go, president and chief operating officer of RLC, said: “We continue to be very optimistic about the prospects of the real estate sector. Our business are improving on all fronts.”

Go said the company’s venture into affordable lodging has also boosted RLC’s performance and expects this business to grow with the addition of new sites. “Our newly launched gohotels.ph hotel chain has received many inquiries regarding franchising across the country. It has been very well received by the market,” he said.

The commercial centers division pumped in 49 percent or P1.6 billion of RLC’s gross revenues, posting a 10 percent growth. Significant rental increment was contributed by the newly opened malls in Dumaguete, Ilocos Norte, General Santos, Tacloban and Davao.

The residential division chalked in revenues of P997 million, representing 32 percent of RLC’s total revenues and a 35 percent increment from the previous level due to increases in completion levels of existing projects such as McKinley Park Residences, The Fort Residences, East of Galleria and Woodsville Viverde.

The office buildings division accounted for nine percent of the group’s revenues, rising 14 percent to P302 million due to rentals from Cybergate Center 3 and Cybergate Plaza.

RLC also derives lease income from Galleria Corporate Center, Robinsons Equitable Tower, Robinsons Summit Center and Robinsons Cybergate Centers Towers 1 and 2.

The hotels division chipped in P319 million or 10 percent of total revenues. The figure is 10 percent higher than the year before due to the opening of Go Hotel in Mandaluyong City. Crowne Plaza Galleria Manila, Holiday Inn Galleria Manila, Cebu Midtown Hotel, Summit Ridge Hotel and Go Hotel posted occupancy rates of 71 percent, 72 percent, 52 percent, 44 percent and 85 percent, respectively.

As of end-December last year, RLC had total assets of P54.4 billion while total equity stood at P28.8 billion.

To ensure continued strong growth, Go said the company will continue to beef up its landbank. “We are acquiring several properties that are suitable for mixed-use development. We remain focused on building mixed-use projects that will allow us to capitalize on our experience and expertise in building fully integrated developments,” Go said.