By James A. Loyola
Robinsons Land Corp. (RLC), one of the Philippines’ leading real estate companies, recorded a 40 percent jump in net income to P8.23 billion last year from P5.9 billion in 2017.
In a statement, RLC said consolidated revenue rose 31 percent to P29.44 billion from P22.52 billion, while overall EBITDA grew by 30 percent to P16.20 billion from P12.48 billion.
RLC said the robust growth was driven by sustained performance of the investment portfolio, which rose by 14 percent to P18.16 billion driven by malls and offices divisions, and the robust performance of the development portfolio, which surged by 72 percent to P11.28 billion.
This is due to revenues recognized from sale of residential units coupled with the sale of institutional lots to its joint venture companies with international property developers.
RLC President and CEO Frederick Go said “2018 has been a banner year for Robinsons Land as both our investment and development portfolios saw robust earnings growths driven by key business strategic initiatives and strong demand from our customers and buyers.”
The Malls Division which contributed 41 percent to the Company’s total revenues, ended 2018 with a healthy growth of 11 percent to P11.94 billion due mainly to strong rental income and the opening of four new malls.
The Offices division registered the biggest growth in RLC’s investment portfolio with a revenue increase of 26 percent to P4.11 billion from the previous year’s P3.27 billion mainly due to rental escalation and revenue contribution of the office buildings completed in 2017 driven by the continuous growing IT-BPM industry.
RLC’s Hotels and Resorts Division was saddled by the weaker sales of some of its properties, pre-operating expenses of new and upcoming hotels, as well as expected higher overhead in the head office.
Revenues increased by 5 percent to P1.98 billion but EBITDA dropped by 7 percent to P673 million versus P724 million in 2017.
Last year, RLC’s warehouse business under IID Division has turnover its first logistic facility located in Sucat Muntinlupa with a total leasable space of 33,000 sqm. It registered a revenue of P135 million and an EBITDA of P22 million.
RLC’s residential division posted a robust growth of 33 percent with realized revenues amounting to P8.69 billion while EBITDA increased by 27 percent to P2.31 billion in 2018.
Sales take-up surged by 49 percent to P15.3 billion driven by new project launches in 2018 and benefitted from the influx of both domestic and overseas buyers.