RLC income up five-fold, REIT offer gets SEC nod

MANILA, Philippines — Robinsons Land Corp. (RLC), the Gokongwei-led property developer, reported a net income of P2.56 billion in the second quarter, up by almost 394 percent from P520 million a year ago.

This brings its first half net income to P5.45 billion, up 48 percent.

Compared to the second quarter, RLC’s net income of P2.56 billion was lower by 11 percent.

Consolidated revenues grew by 55 percent to P26 billion in the first half from P16.7 billion a year ago, driven by the continued recovery of RLC’s core businesses.

RLC president and CEO Frederick Go said the performance for the first half of the year is “a testament to the success of our strategic initiatives, which positions the company for recovery and growth.”

“Amid the very challenging business environment, we continue to pursue new opportunities and agile innovations to deliver sustainable value to all our stakeholders,” Go said.

The commercial centers division posted revenues of P4.19 billion and EBITDA of P2.01 billion in the first six months. In the second quarter alone, RLC managed to grow revenues by 43 percent and EBITDA by 50 percent quarter-on-quarter despite the re-imposition of strict quarantine restrictions.

The office buildings division raked in first half revenues of P3.11 billion, up three percent to P3.11 billion, while EBITDA and EBIT registered at P2.58 billion and P2.13 billion, respectively.

Despite the uncertain environment, RLC’s office buildings division is targeting to complete five new developments namely, Cybergate Iloilo 1, Cybergate Bacolod 2, Cyber Omega, Bridgetowne East Campus One, and Cybergate Galleria Cebu.  It has 649,500 square meters in net leasable area, after the partial turnover of Cyber Omega located in Ortigas CBD and the completion of Bridgetowne East Campus One located within the PEZA-accredited Bridgetowne Destination Estate.

For the residential division, net pre-sales grew 19 percent led by the strong performance of The Sapphire Bloc – East and South Towers in Ortigas CBD, Sierra Valley Gardens in Cainta, and AmiSa Private Residences in Mactan, Cebu.

Realized revenues registered at P4.74 billion in the first half while EBITDA and EBIT ended at P1.77 billion and P1.73 billion, respectively.

RLC  spent P9.49 billion for capital expenditures, approximately 50 percent of the P20 billion budget for the year  for the development of malls, offices, hotels, industrial facilities, destination estates, and construction of its residential projects. ###

Meanwhile, the Gokongwei Group’s RL Commercial REIT Inc. (RCR) has secured the Securities and Exchange Commission’s greenlight  to proceed with its P26.7 billion initial public offering.

Sponsored by  RCR is offering of up to 3.34 billion common shares at a maximum offer price of P7.31 per share, with an over-allotment option of up to 305 million common shares.

Based on the latest timetable submitted to the SEC, the offer period is targeted  from Aug. 31 to Sept. 8, with the  listing targeted on Sept. 20.

Upon listing, RCR is poised to be the largest REIT by portfolio valuation, longest in land lease tenure, and most geographically diversified office REIT in the country, the company said in a statement.

RCR’s initial portfolio has a total gross leasable area of 425,315 square meters consisting of 14 PEZA-registered, high quality commercial real estate assets strategically located in central business districts across Metro Manila such as in Makati, Pasig, Quezon City and Taguig and in the key cities of Naga, Tarlac, Cebu, and Davao.

The total appraised value of RCR’s initial portfolio was P73.9 billion as of end-June, according to Santos Knight Frank’s valuation.

RCR will be the fourth REIT to list at the Philippine Stock Exchange following Ayala Land’s AREIT Inc., Double Dragon’s DDMP REIT and soon, Filinvest Group’s FILREIT.