Lockdown, mall closures slash RLC income in 2020

Robinsons Land Corp. (RLC), the property development arm of the Gokongwei Group, on Tuesday said its income last year plunged 39 percent to P5.26 billion, from the previous year’s P8.68 billion.

The company said its revenues fell due to the temporary closures of its malls during the lockdown period. Last year, RLC’s revenues declined by 17 percent to P25.4 billion, from P30.58 billion recorded in 2019.

“Amid the challenges of 2020, we adopted new ways of working and embraced a mindset of innovation to continue serving our customers. We capitalized on new opportunities for growth and accelerated our digital transformation initiatives to become more agile,” RLC President and CEO Frederick Go said.

“As the business gradually recovers from the impact of community quarantines, we will continue to support our employees, business partners, and stakeholders.”

RLC said its development portfolio, accounting for 49 percent of consolidated revenues, rose by 30 percent to P12.26 billion. Its investment portfolio, meanwhile, fell 38 percent to P13.15 billion. Total cash and cash equivalents at the end of the year stood at P13.78 billion.

The commercial centers division reported consolidated revenues of P5.96 billion. Last year, its mall revenues alone were at P13.25 billion.

“RLC is optimistic that the malls business will continue to rebound as quarantine restrictions ease and vaccinations start,” it said.

The office buildings division increased its revenues by 10 percent to P5.85 billion, from last year’s P5.32 billion through leasing activities on new developments and rental escalations in existing office buildings.

The company said it will continue to expand its offices under flexible workspaces, which it currently has operational sites in Pasig, Taguig and Quezon City.

For its residential division, RLC recorded full-year revenues of P12.13 billion, some 33 percent higher from the previous P9.13 billion.

The industrial and integrated developments division almost doubled its revenues from operational industrial facilities—but coming from a low base—to P262 million driven by its two warehouse facilities. It recognized revenues from the sale of commercial and industrial lots to P133 million.

“Heading into 2021, we expect to sustain the gradual recovery of our businesses as quarantine restrictions ease and consumer confidence starts to bounce back. We will continue to provide relevant real estate solutions, while prioritizing health and safety,” Go said.

The company said it spent some P22.15 billion in capital expenditures last year, which it utilized for land acquisitions, development of malls, offices, hotels and warehouse facilities and construction of residential projects for its local operations.

RLC also plans to list its own real estate investment trust company this year, injecting its 25 office buildings with total net leasable area of over 600,000 square meters.

Article and Photo originally posted by Business Mirror last March 3, 2021 and written by VG Cabuag.