RLC allots P16 B for capex

MANILA, Philippines - Robinsons Land Corp. (RLC), the Gokongwei owned property developer, is pouring in P16 billion for domestic capital expenditures for this year which will be funded from internally generated cash and borrowings.

For its mall footprint, RLC aims to develop malls in Naga, Iligan, Ormoc and Abucay and expand Robinsons Place Antique and Robinsons Place Butuan in 2017, translating to an 11 percent increase in gross leasable area (GLA).

In terms of office space, RLC will complete Cyber Sigma in Taguig and two offices in Naga and Davao this year and finish Exxa Tower in Quezon City and Cyberscape Gamma in Ortigas Center in 2018. These five office developments will have a combined net leasable area (NLA) of 146,500 sqm, of which a third have already been pre leased to-date.

For its hospitality business, RLC has a target to build more hotel properties in Visayas and Mindanao by opening Summit Maxilom in Cebu, Summit Tacloban and Go Hotels - Iligan in 2017.

By 2018, RLC’s hotel room count would stand at 3,350, or 19 percent higher than 2017, with the completion of Summit Naga, Amisa, Go Hotels - Naga and Go Hotels - Tuguegarao.

In all, the company has plans to expand each business unit as it reported an eight percent growth in net income for fiscal year 2016.

Net income grew to P6.2 billion during the period from P5.7 billion a year ago.

Its EBIT grew to P8.5 billion from P7.5 billion or a 12 percent growth on the back of strong top-line performance of 14 percent to P22.5 billion.

RLC’s investments consist of malls, offices and hotels which account for 83 percent of the company’s EBITDA with the balance of 17 percent coming from the development portfolio composed of four residential brands.

By business segment, the company’s Commercial Centers Division continued to account for a majority of the total company revenues at 45 percent to P10 billion, up nine percent during the period from P9.1 billion a year ago.

Last year, RLC successfully commenced commercial operations of four new lifestyle centers and one mall expansion planned for the year namely: Robinsons Galleria Cebu, RLC’s third and largest mall in Cebu, Robinsons Place Tagum in Davao, Robinsons General Trias in Cavite, Robinsons Place Jaro in Iloilo and Robinsons Place Ilocos expansion.