RLC profit up 90 Percent in Q1

MANILA, Philippines — Robinsons Land Corp. (RLC), the property unit of the Gokongwei family, reported a net income of P2.66 billion in the first quarter, up 90 percent year-on-year and eclipsing pre-pandemic earnings by 45 percent.

“We posted robust first quarter numbers right after a record year. This is a result of the strategic initiatives we continue to pursue on the back of strong fundamentals and a solid balance sheet,” said RLC president and CEO Frederick Go.

For the first three months of 2023, RLC poured in P4.52 billion in capital expenditures for the development of malls, offices, hotels and warehouse facilities, acquisition of land, and construction of its residential projects for its local operations.

The company attributed the rosy and robust first quarter results to hefty revenues, which rose by 39 percent to P9.28 billion  as property, malls and hotels posted strong growth.

RLC’s investment portfolio recorded a strong double-digit topline growth in the first three months of 2023, led by the malls and hotels businesses. Revenues jumped 38 percent to P6.77 billion to make up 73 percent of consolidated revenues.

Its property development portfolio, on the other hand, generated P2.51 billion in realized revenues during the period, translating to a growth of 42 percent, driven by the improved revenue recognition from RLC Residences and earnings from equity shares in joint venture projects.

In terms of business segments, Robinsons Malls registered  revenues of P3.91 billion during the quarter, up by 46 percent year-on-year and accounting for 42 percent of consolidated revenues.

Notwithstanding the strong impact of holiday shopping in the fourth quarter of 2022, mall revenues still managed to grow by three percent and rental revenues by five percent. Total mall leasable space currently stands at 1.6 million square meters with over 8,000 retailers and a 91 percent system-wide occupancy rate.

Robinsons Offices delivered steady topline results with a four percent increase in revenues to P1.85 billion in the first quarter.

Similarly, Robinsons Hotels and Resorts (RHR) outpaced first quarter pre-pandemic revenues by 70 percent to end at P879 million.

Meanwhile,  Robinsons Logistics and Industrial Facilities (RLX) reported  P137 million in revenues in the first quarter.

At present, RLX owns eight industrial facilities in Sucat, Muntinlupa, Sierra Valley in Cainta, San Fernando and Mexico in Pampanga, and Calamba, Laguna.

RLC Residences and Robinsons Homes, meanwhile, achieved a 68 percent year-on-year uptick in realized revenues to P2.38 billion, on account of improved revenue recognition.