During the first nine months, RLC was able to acquire sales permits for the second batch of condominium units and duplexes, and all such residential units completely sold out.
Non-traditional sources of revenues had kept retail giant Robinsons Land Corp. (RLC), one of the leading diversified real estate companies in the Philippines, to hold its ground against the adverse effects of the global pandemic.
As quarantine restrictions are slowly lifted and more industries start to re-open, the company said its core businesses, primarily its malls, are noting upswings in consumer demand and beginning to show signs of recovery.
Non-traditional sources of revenues had kept retail giant Robinsons Land Corp. (RLC), one of the leading diversified real estate companies in the Philippines, to hold its ground against the adverse effects of the global pandemic.
As quarantine restrictions are slowly lifted and more industries start to re-open, the company said its core businesses, primarily its malls, are noting upswings in consumer demand and beginning to show signs of recovery.
The company reported that its Chengdu Ban Bian Jie project, located in Wuhou District, the largest of the five internal districts of Chengdu in China performed remarkably well.
“During the first nine months, RLC was able to acquire sales permits for the second batch of condominium units and duplexes, and all such residential units completely sold out,” the company noted.
RLC also plans to list an office real estate investment trust (REIT) as another potential income driver.
To create further opportunities for growth, RLC is looking to list a REIT company for some of its office assets next year.
It plans to infuse a significant number of its existing office buildings into the new REIT company. RLC has 25 office buildings with total net leasable area of over 600,000 square meters.
Capex at P10.4B
RLC reported P10.41 billion in capital expenditures for the first nine months which was used for land acquisitions, development of malls, offices, hotels and warehouse facilities, and the construction of residential projects for local operations.
Spendings are notably lower due to stringent cash conservation measures, quarantine restrictions and construction slowdown.
“We are encouraged by the steady recovery of our businesses on the back of improving trends seen on a quarterly basis, as well as in October. Increasing customer engagement and the sustained interest from external partners give us confidence that business will continue to pick up in the coming months. For the remainder of the year, we will continue to focus on operational recovery while implementing strict safety protocols,” RLC President and CEO Frederick Go said.
Profit hits P717M
Net income in the third quarter grew by 38 percent from a year ago to end at P717 million. Notwithstanding the weak business environment, RLC closed the first nine months with earnings before income tax, depreciation and amortization (EBITDA) of P10.77 billion and a net income of P4.4 billion.
Amid quarantine procedures and public safety concerns, each of the company’s business units prioritized digital transformation initiatives and generated positive cash flows, according to Go.
Consolidated revenues during the period registered at P20 billion or an 11 percent contraction. The company’s development portfolio, accounting for 49 percent of consolidated revenues, increased by 33 percent to P9.84 billion to partially offset the decline from the investment portfolio which ended at P10.17 billion, 33 percent lower versus the same period last year.
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Article and Photo originally posted by Tribune last November 8, 2020 3:00am and written by Jun Yap.
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