RLC to list REIT

MANILA, Philippines — Robinsons Land Corp., the property arm of the Gokongwei Group, plans to list a real estate investment trust (REIT) company next year.

“To create further opportunities for growth, RLC is looking to list a REIT company for some of its office assets in 2021,” RLC said.

The company plans to infuse a significant number of its existing office buildings into the new REIT company.

Currently, the company has 25 office buildings with total net leasable area of over 600,000 square meters.

Companies that own and operate income-generating real estate assets are considered REIT companies. These companies include offices, apartment buildings, hotels, warehouses, shopping centers and highways.

The REIT Act allows REIT companies to list and trade its shares of stock in the stock market as an alternative means to raise funds for property development and expansion initiatives.

RLC posted a third quarter net income of P717 million, up 38 percent.

However, its nine-month net income declined to P4.4 billion from P7.31 billion a year ago.

Consolidated revenues registered at P20 billion during the period, down  by 11 percent. The company’s development portfolio, accounting for 49 percent of consolidated revenues, increased by 33 percent to P9.84 billion.

“We are encouraged by the steady recovery of our businesses on the back of improving trends seen on a quarterly basis, as well as in October. Increasing customer engagement and the sustained interest from external partners give us confidence that business will continue to pick up in the coming months. For the remainder of the year, we will continue to focus on operational recovery while implementing strict safety protocols,” RLC president and CEO Frederick Go said.

The company spent P10.41 billion during the nine-month period for land acquisitions, development of malls, offices, hotels and warehouse facilities, and construction of residential projects for its local operations.

Moving forward, Go said the company would continue to provide relevant solutions to evolving needs and aspirations in the new norm, while prioritizing the health, safety and well-being of its employees and customers.