Robinsons Land posts 79% income growth

By Zinnia B. Dela Peña
The Philippine Star
February 15, 2003

Boosted by hefty revenues from its commercial center operations, the Gokongwei-owned Robinsons Land Corp. reported a 79-percent income growth in the first quarter of its fiscal year ending September 2003 to P181.28 million from only P101.1 million the previous year.

In a quarterly report filed with the Securities and Exchange Commission, RLC said gross revenues amounted to P926.55 million or 19 percent higher than the P779.29 million recorded a year ago. Of the total amount, 61.71 percent or P572 million accounted for shopping mall revenues.

RLC attributed the 32-percent increase in commercial center revenues to rental improvements from existing malls and the excellent take-up of its four new malls – Robinsons Place-Iloilo, Robinsons Starmills-Pampanga, Robinsons Place Novaliches and Robinsons Place Metro East.

The company’s hotel division, on the other hand, contributed revenues of P186 million, slightly up from the P185 million recorded a year earlier. Despite the slump in the industry. RLC’s hotels and apartelle continued to register satisfactory occupancy rates. The three-month average occupancy rate of Manila Galleria Suites stood at 69 percent, the Manila Midtown Hotel at 47 percent, the Cebu Midtown Hotel at 52 percent, and the Robinsons Apartelle in Mandaluyong at 32 percent.

RLC’s high-rise buildings division pumped in revenues of P114 million, down by five percent from P120 million last year. However, it continues to enjoy recurring lease income from three of its office buildings (Galleria Corporate Center, Robinsons-Equitable Tower and Robinsons Summit Center at Ayala), all of which have become the choice corporate addresses of reputable multinational and domestic companies. Rental income from these properties grew 50 percent from P18 million to P27 million.

As for its housing division, RLC generated revenues of P55 million or 30.95 percent higher than the previous level. Among its projects include the Antipolo Development (Robinsons Homes East, San Jose Heights commercial arcade, San Lorenzo townhomes), Robinsons Vineyard in Dasmarinas, Cavite; Southsquare Village in General Trias, Cavite; Robinsons Highlands in Davao City; Grosvenor Place in Tanza, Cavite; Centennial Place in Quezon City.

Operating income rose to P252.44 million compared with only P163.41 million while cost and expenses went up nine percent to P674.11 million, principally due to higher salaries, advertising and promotions and amortization of pre-operating expenses, among others.

As of Dec. 31, 2002, total assets of the company stood at P18.8 billion while stockholders’ equity was at P11.4 billion.

RLC expects its net income to grow further this year with the recent addition of two new malls – Robinsons Place-Sta. Rosa and Big R Supercenter in Cagayan de Oro – during the quarter.

The firm has earmarked P3 billion this year for the construction of four new shopping malls, and residential buildings.

The new commercial centers are expected to rise in Dasmarinas, Cavite; Lipa, Batangas; Cainta, Rizal; and Mandaluyong City. Except for the Mandaluyong mall, these projects are in various stages of development and are slated for completion within the year.

The firm will use proceeds from its upcoming P2-billion commercial paper issue to bankroll its capital expenditures this year.

RLC’s objective is to further strengthen its position as the most solid and reputable real estate developer in the country.