Robinsons Land 9-month net income up 47%
In a press release ahead of Robinsons Land's [RLC 19.32 2.77%] full earnings report, the company said that it grew profits to P6.4 billion for the first 9 months of 2021 thanks to “increased demand and business activity”, and that it is hopeful for the future due to the falling COVID case rate and the vaccination program. RLC noted that the recent IPO of its REIT, RL Commercial REIT [RCR 7.08 1.80%], has given it a great cash position that it will use through the remainder of the year and throughout the next to boost capex spending.
RLC said that it had already spend 89% of its planned capex budget for 2021, and that it planned to increase overall capex spending next year for “longterm growth and expansion.” Granular data on RLC’s business units was not made available, but the press release highlights included a paragraph on its logistics segment where revenues grew 24% and RLC bared plans to “infuse select industrial assets including land” into a subsidiary called Robinsons Logistix and Industrials (RLX), and that it would infuse these assets using a tax-free property-for-share swap. RLC mentioned that it was encouraged by the “consistent performance” of the logistics and warehouse business, and by the “consequent steady demand for warehousing facilities”. EBITDA at its five warehouse facilities grew 36% y/y.
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It’s very interesting to me to see RLC packaging logistics assets into a new subsidiary with a punchy name that would make for a great ticker symbol. I’m not saying that RLX is going to be a future REIT candidate, but I have speculated for a long time now that one of the big developers will take a swing at monetizing the dependable performance of warehousing assets by spinning off its mature industrial warehouse properties into something of a logistics REIT.
Jollibee [JFC 248.60 1.89%] and DoubleDragon [DD 10.10 0.20%] made a lot of noise when they revealed plans for the country’s first industrial REIT, CentralHub Industrial Centers Inc, but that was way back in July. We haven’t heard much since then, except that the logistics industry is still growing with consistent profits across nearly all sub-segments of the business, but especially for warehouses and cold storages. Again, this is just pure speculation on my part, but could RLC be doing the pre-production on what will soon be a new industrial REIT? The more the merrier, in my opinion.
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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