RLC profit slips 8% to P3.7 billion in 6 months

MANILA, Philippines — Robinsons Land Corp. (RLC) posted an eight percent decline in its first half net income to P3.7 billion due to the impact of the coronavirus pandemic.

RLC’s consolidated revenues increased by three percent to P15.4 billion with the full impact of the pandemic felt during the second quarter.

The investment portfolio  or  49 percent of consolidated revenue declined 25 percent to P7.5 billion during the period versus P10 billion a year ago.

However, the development portfolio managed to surge 59 percent to P7.9 billion with the new residential accounting treatment.

Without the adjustment, residential revenue was down by 51 percent.

RLC president and chief executive officer Frederick Go said the trend is improving and the economy is showing signs of recovery.

“We continue to seek opportunities and innovative new ways of doing business to deliver long-term sustainable value to all our stakeholders,” Go said.

Among the different businesses, RLC’s malls division saw a 42 percent decline in revenue  to P3.8 billion, mainly because of waived rentals for non-operational tenants and rental discounts provided during the start of the quarantine period in March.

Robinsons Hotels and Resorts Division (RHR) was the second business unit that was heavily affected by the implementation of quarantine regulations and protocols.

During the period, this segment posted a 39 percent decline in revenues to P660.4 million due to the restrictions on guest accommodations from the start of the community quarantine and the disruption brought about by the Taal Volcano eruption in January.

However, the office buildings division remained one of RLC’s most stable divisions as it registered the highest growth in the investment portfolio.

Revenue increased 23 percent to P2.9 billion during the period from P2.4 billion a year ago mainly because of the successful leasing activities in Cyber Sigma in BGC, Zeta Tower and Exxa Tower in the Bridgetowne Estate, Cyberscape Gamma in Ortigas and workable centers in Gamma, Exxa and Zeta.