RLC profits rise 24% despite lower revenues

The Gokongwei Group’s property development arm Robinsons Land Corporation (RLC) reported a 24 percent growth in attributable net income to P12.06 billion last year despite lower revenues and a slower fourth quarter profit growth of seven percent growth to P3.22 billion.

In a disclosure to the Philippine Stock Exchange, the firm said the growth in profits last year was primarily fueled by the success of its malls, hotels, and joint ventures while noting that it was coming from a high base in 2022.

Excluding the impact of the China profit from the previous year, attributable net income would have risen by 45 percent year-on-year.

“We are delighted with the outstanding performance demonstrated across our real estate businesses which propelled us to reach record breaking heights,” said RLC Chairman, President and CEO Lance Y. Gokongwei.

He noted that, “These achievements underscore our steadfast dedication to delivering excellence through timely execution, strategic initiatives, and an unwavering commitment to delivering quality and value to all our stakeholders.”

In 2023, RLC posted an eight percent decline in consolidated revenues to P42.02 billion, pointing out that the “lofty base last year was a result of the substantially recognized revenue contribution from China’s Ban Bian Jie development project.”

Excluding China’s revenues from last year, consolidated revenues would have been up by 28 percent year-on-year. 

RLC’s investment portfolio contributed 69 percent of revenues, totaling P28.82 billion, primarily generated by the malls, hotels, RLX and office businesses. The remaining portion of revenues amounting to P13.20 billion came from RLC’s development portfolio.

Robinsons Malls continued to experience significant increase in revenues, driven by sustained growth in consumer spending and retail sales. Year-on-year, revenues surged by 24 percent to P16.21 billion as rental revenues rose by 28 percent to P11.49 billion.

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RLC’s performance was boosted by a resurgence in tourism and hospitality as Robinsons Hotels and Resorts (RHR) almost doubled its revenue to a record P4.56 billion. All brand segments contributed to this growth, along with the food and beverage component and MICE business. 

Robinsons Offices’ revenues inched up four percent to P7.36 billion in 2023 due to the complete utilization of offices completed in 2022 while Robinsons Logistics and Industrial Facilities (RLX) registered a topline growth of 24 percent year-on-year to P687 million last year. 

Meanwhile, Robinsons Destination Estates (RDE) recognized revenues of P1.16 billion from a portion of deferred gain on the sale of land to joint venture entities. 

New project launches significantly boosted the combined net sales take-up of RLC Residences and Robinsons Homes by 26 percent to P21.33 billion in 2023 – highest in company’s history. 

Realized revenues expanded by 32 percent to P12.01 billion, supported by higher collections from buyers reaching the equity threshold, faster construction progress, and strong equity earnings contribution from joint venture projects, totaling P2.71 billion, a 59 percent jump from 2022. 

Residential net sales take-up from joint venture projects in 2023 surged 117 percent to P19.47 billion.

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

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