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Rockwell’s earnings rise 40% to P2 B

Rockwell Land Corporation reported a 40 percent rise in attributable net income to P2.0 billion in the first nine months of the year from P1.4 billion in the same period of 2021.

In a disclosure to the Philippine Stock Exchange, the firm said consolidated revenues grew 39 percent to P12.47 billion from last year’s P8.98 billion.

Total EBITDA reached P4.26 billion, higher than last year’s P3.31 billion due to higher EBITDA from commercial development. Overall EBITDA margin registered at 34 percent of total revenues, lower than last year’s 37 percent.

Share in net income in the joint venture with Meralco and T.G.N Realty Corporation contributed 7 percent to the Company’s total EBITDA. Residential development and commercial development contributed 47 percent and 53 percent to the total EBITDA, respectively.

Residential Development generated P8.98 billion, contributing 72 percent of the total revenues for the period. Bulk of the revenues came from the sale of condominium units, including accretion from interest income.

EBITDA from this segment amounted to P1.97 billion, 13 percent lower than the P2.27 billion in the same period last year mainly attributable to projects with lower construction progress as they near full completion and higher cost incurred.

Commercial Development revenues amounted to P3.5 billion, 139 percent higher than 2021’s P1.46 billion primarily due to recognition of sale of One Proscenium and significant improvement in retail segment performance.

This segment contributed 28 percent to total revenues excluding the share in the joint venture with Meralco for the Rockwell Business Center in Ortigas, Pasig City.

The segment’s EBITDA amounted to P2.29 billion, 118 percent higher from the same period last year due to recognition from sale of One Proscenium and significant improvement in retail performance.

This includes the share in net income in the joint venture amounting to P290 million, contributing 13 percent to the segment’s EBITDA.

Retail Operations which includes retail leasing, interest income and other mall revenues generated revenues of P1.36 billion, 104 percent higher than last year’s P666 million due to improved average rental and occupancy rate.

Office Operations generated P1.97 billion which is equivalent to 16 percent of the total revenues. Office operations include office leasing, sale of office units and other office revenues.

Hotel Operations, contributed 1 percent of the total revenues. Its revenues amounted to P163 million and costs and expenses at P131 million. Resulting EBITDA is at P32 million.

Share in net income of joint venture and associates amounted to P297 million, higher than last year’s P277 million. The 7 percent growth from last year is mainly due to RBC-Ortigas’ higher average occupancy and rental rate.

At its 70 percent share, Rockwell generated total revenues of P451 million and share in net income of P290 million.

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The article was originally published in Manila Bulletin and written by James A. Loyola.

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