RLC books lower profit due to disasters

MANILA, Philippines - Property firm Robinsons Land Corp. (RLC) booked lower profits in the first half of its current fiscal year  dragged by higher expenses and losses from fire- and typhoon-damaged malls.

In a regulatory filing, the company said net income slipped eight percent to P2.23 billion in the October 2013 to March 2014 period. It incurred a P215.4-million loss from typhoon and fire losses.

Total real estate revenues rose 7.3 percent to P7.66 billion from P7.14 billion a year earlier but gross expenses jumped 12 percent to P5.55 billion in the six-month period from P4.93 billion a year ago.

“Aside from Super  Typhoon Yolanda losses and Galleria mall fire loss, decrease in interest income by P89.5 million brought further non-operating losses to a high level at P331 million resulting to a lower net income for the period,” RLC said.

However, operations of RLC’s business units remained strong in the first half of its fiscal year.

The Commercial Centers Division contributed 47 percent or P3.99 billion of the company’s gross revenues, up 11.6 percent from a year ago.

“Metro Manila malls led by Robinsons Galleria and Robinsons Place Manila and the five new malls contributed P127.1 million to the growth while most provincial malls also posted decent growth in rental revenues,” RLC said. Amusement revenue climbed 19.9 percent to P579 million.

RLC’s Residential Division accounted for 35 percent or P2.94 billion of total revenues. Its revenue contribution rose 3.5 percent from last year’s P2.85 billion.

The Office Buildings Division contributed P728.8 million in revenues, higher by 1.6 percent from P717.4 million. Lease income is derived from eight office buildings including Galleria Corporate Center, Robinsons Equitable Tower and Robinsons Summit Center.

The Hotels Division said it contributed P791.7 million to RLC’s revenues, up 1.8 percent due to better occupancy rates in Crowne Plaza Galleria Manila, Holiday Inn Galleria Manila, Summit Circle Cebu (formerly Cebu Midtown Hotel), Summit Ridge Hotel and Go Hotels.

RLC is jacking up its capital spending by a fifth to P16 billion this fiscal year to fasttrack the construction of malls, office buildings and hotels.