Robinsons Land records 130 percent growth

CEBU, Philippines —  Robinsons Land Corporation (RLC) posted a 130 percent growth in net income attributable to parent in the third quarter of 2022 versus the same period last year.

Net income after tax reached P2.05 billion on robust contributions from its investment portfolio, which comprise of the malls, offices, hotels, and industrial facilities.

“The strong recovery of our investment portfolio fueled the Company’s growth in the first nine months. With the economy inching closer to full reopening, RLC is benefitting from the overall improvement in consumer sentiment going into the holiday season. We are encouraged to keep pursuing our investment strategies to create long-term value for our shareholders,” said RLC President and CEO Frederick D. Go.

For the nine-month period ending September 30, RLC grew consolidated revenues by 16 percent to P35.77 billion, driven by increased commercial leasing, accelerated consumption recovery in the malls, and improved sales recognition of domestic residential projects.

This was bolstered by the recognition of revenues from Phase 2 of the Chengdu Ban Bian Jie project in China.  Net income attributable to parent increased to P6.74 billion, up 6% versus the same period last year. Earnings per share (EPS) attributable to parent is already at 85 percent of full-year 2021 earnings.

RLC sustained its strong financial position with total assets of P221 billion and Shareholders’ Equity of Php133 billion. The company maintained a net gearing ratio of 0.31x as of September 2022.

Robinsons Malls grew total revenues by 54 percent to P9.25 billion to account for 26 percent of the Company’s consolidated revenues in the first nine months of 2022.

Rental revenues jumped 70 percent following the resurgence of foot traffic in physical stores and the continuous return to normal for business operations nationwide.

EBITDA escalated by 67 percent to P4.74 billion, while EBIT soared 12 times to P2.02 billion year-on-year.

In the third quarter alone, total mall revenues surged 95 percent versus same period last year to P3.54 billion on account of accelerated growth in rental revenues by 126 percent to P2.45 billion, back to its pre-pandemic levels. Compared to the previous quarter, Robinsons Malls recorded a 19 percent upswing in rental revenues on the back of increased tenant sales and built-in rental escalations.

Meanwhile, Robinsons Offices achieved stable topline results in the first nine months of 2022 with a 12 percent growth from a year ago to P5.28 billion. This steady performance is driven by rental escalations and the success of the company’s leasing activities for new buildings namely, Cybergate Iloilo 1, Cyber Omega in Ortigas Center, and Bridgetowne East Campus One in RLC’s Bridgetowne Destination Estate.

EBITDA and EBIT ended at P4.62 billion and P3.92 billion, respectively. In the third quarter alone, revenues climbed 10 percent year-on-year to P1.72 billion, while EBITDA increased nine percent to P1.54 billion and EBIT rose 11 percent to P1.28 billion.

Robinsons Offices completed Cybergate Galleria Cebu in the third quarter, adding almost 20,000 square meters of gross leasable area (GLA). This brings RLC’s office portfolio to 707,000 sqm of GLA with a 92 percent leased percentage.

In addition, RLC strengthened its presence in the growing flexible workspace segment with the opening of two new build-to-suit work.able centers in Cyber Omega in Pasig and in Giga Tower in the Bridgetowne Destination Estate. It now has a total of eight work.able sites with a blended occupancy of 96 percent.

With the significant easing of travel restrictions, resurgence of domestic tourism, and reopening of international borders, Robinsons Hotels and Resorts (RHR) improved revenues by 65 percent to P1.39 billion in the first nine months of 2022. Higher average room rates, increased F&B sales, and the resurgence of MICE events positioned RLC’s hospitality business for a strong recovery.

Notwithstanding pre-operating expenses from new hotel developments, EBITDA climbed eight percent to P204 million as third quarter 2022 EBIT reversed back into the black for the first time since the pandemic.

Further cementing itself as the largest hotel developer and operator in the Philippines with the biggest portfolio of hospitality developments, RHR has completed three new hotels – Go Hotels Plus Naga, Go Hotels Plus Tuguegarao, and Summit Hotel Naga.

RHR also owns Fili Hotel at NuStar, the Philippines’ first homegrown luxury hotel and the most exciting hotel project in the country this year.  – LPM (FREEMAN)