RLC earnings down 39% to P5.26 billion

MANILA, Philippines — Robinsons Land Corp (RLC), the real estate development arm of the Gokongwei family, posted a net income of P5.26 billion last year, down 39 percent due to the COVID-19 pandemic.

For the fourth quarter, however, RLC reported a 20 percent growth in net earnings to P863 million.

Full year EBITDA amounted to P13.68 billion, while consolidated revenues declined by 17 percent to P25.4 billion.

RLC’s development portfolio, accounting for 49 percent of consolidated revenues, increased by 30 percent to P12.26 billion to partially offset the decline from the investment portfolio which ended at P13.15 billion, 38 percent lower than the previous year.

Despite significant reduction in revenues, cash generation remained strong with total cash and cash equivalents ending at P13.78 billion.

“Amid the challenges of 2020, we adopted new ways of working and embraced a mindset of innovation to continue serving our customers. We capitalized on new opportunities for growth and accelerated our digital transformation initiatives to become more agile. As the business gradually recovers from the impact of community quarantines, we will continue to support our employees, business partners, and stakeholders,” said RLC president and CEO Frederick Go.

For the commercial division business, consolidated revenues amounted to P5.96 billion, while EBITDA closed at P4.11 billion.

RLC is optimistic that the malls business will continue to recover as quarantine restrictions ease and vaccinations start.

For the residential division, revenues went up 33 percent to P12.13 billion.

Sales take-up reached P7.29 billion.

The company plans to join the real estate investment trust (REIT) bandwagon.

It currently has 25 office buildings with a total net leasable area of over 600,000 square meters.