Robinsons Land Corporation (RLC), a leading diversified real estate company in the Philippines, reported a net income of P1.74 billion for the first quarter of 2022 from P2.9 billion in the same period last year.
The firm’s net income in the first quarter of 2021 was boosted by the recognition of revenues and earnings from its residential project in China. First quarter 2022 profit is 94 percent of the recorded profits in the first three months of 2019 (pre-pandemic).
RLC said it accelerated its operating income from domestic operations by 12 percent to P2.29 billion for the first quarter ended of 2022 versus the same period last year.
Its investment portfolio continued to rebound strongly with a double-digit topline growth for the first three months of the year.
Led by the mall and office businesses, revenues jumped 19 percent to P4.92 billion to contribute 73 percent of total revenues, 85 percent of overall EBITDA, and 78 percent of consolidated operating income.
As more regions, including Metro Manila, transitioned to the lowest COVID-19 alert level, RLC said it is poised for sustained recovery on the back of increased mobility, improved consumer sentiment and expanded operational capacities.
RLC’s property development portfolio generated P1.77 billion in realized revenues in the first quarter of 2022, registering a decline of 86 percent due to the recognition of revenues from China last year.
In the first quarter of 2021, RLC booked P10.45 billion in revenues from its Chengdu Ban Bian Jie project in China following the completion of handover activities for Phase 1.
The Company is expecting to match this with revenues from Phase 2, which will be recognized in the succeeding quarter.
On a quarter-on-quarter basis, RLC continued to build momentum with a 40percent sequential growth in consolidated operating income, supported by a solid 18 percent increase in total revenues in the first quarter of 2022 against the last quarter of 2021.
“The encouraging signs of recovery across our businesses solidify our optimism in RLC’s future growth prospects,” said RLC President and CEO Frederick D. Go.
He added that, “Our strong fundamentals and solid balance sheet will boost recovery momentum, driving us closer to pre-pandemic performance. We will push to capitalize on opportunities to accelerate growth and deliver long-term sustainable value.”
Improved consumer spending and retail sales lifted Robinsons Malls’ revenues to P2.67 billion, up 19 percent year-on-year and quarter-on-quarter, to account for 40 percent of consolidated revenues.
Robinsons Offices delivered stable topline results with a 12 percent growth in revenues to P1.77 billion in the first quarter of 2022, driven by the strength of its portfolio, which consists of quality assets in strategic locations with a wide geographic dispersion and strong clientele base.
With the easing of travel restrictions and the re-opening of the country’s tourist destinations, Robinsons Hotels and Resorts (RHR) exceeded 2021 revenues by 30 percent to P335 million.
Robinsons Logistics and Industrial Facilities (RLX) continued to capture demand for industrial spaces as it more than doubled its leasing revenues to P135 million in the first quarter of 2022 versus the same period last year.
Meanwhile, the Integrated Developments Division recorded P57 million revenues from the sale of parcels of land to joint venture entities.
RLC Residences and Robinsons Homes achieved a 166 percent uptick in realized revenues on a quarter-on-quarter basis to P1.41 billion on the account of higher full equity sales.
Net sales reservations reached P2.90 billion for the first quarter of 2022 from P2.82 billion the previous year with the launch of three new projects.
RLC’s Chengdu Ban Bian Jie project in China is expected to boost earnings this year with overall project already 96 percent sold and as Phase 2 nears completion.
Furthermore, Chengu Ban Bian Jie is set to repatriate the remaining $25 million of RLC’s $225 million invested capital within the year.
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The article was originally published in Manila Bulletin and written by James A. Loyola.