EARNINGS OF Robinsons Land Corp. (RLC) inched up in the third quarter as an almost threefold jump in its expenses dampened the growth of its revenues during the period.
The Gokongwei-led property developer reported a 3% increase in its attributable net income to P3.31 billion during the July to September period. Total revenues soared 79% to P16.39 billion but a 175% growth in total costs to P10.57 million weighed on its bottom line.
In a statement yesterday, the company said its improved top line can be linked to revenues from its Chengdu Ban Bien Jie project in China. This started to be realized in the third quarter, amounting to P8.84 billion or 28% of the company’s consolidated revenues.
Its residential division also added P6.34 billion in net pre-sales during the third quarter to rise 65% from last year. Among the projects it launched in the period is a 30-hectare township project located in Quezon City and Pasig City. Together with Shang Robinsons Properties, Inc., it also launched a 9,118-square meter luxury residential project in Bonifacio Global City.
For the nine months to September, RLC’s attributable net income rose 12% to P7.31 billion. Total revenues increased 40% to P31.18 billion as costs climbed 74% to P17.62 billion.
By business segment, revenues from the company’s office buildings grew the most in the nine-month period at 27% to P3.55 billion, comprising 11% of the pie. This came from higher rental and renewal rates from office spaces launched last year.
Hotels and resorts posted the next highest growth at 14% to P1.69 billion, representing 6% of the company’s revenues. It was driven by the strong performance of its existing developments in Tagaytay, Cebu, Palawan, Bacolod and Davao and its new hotels in Tacloban, Iligan and Greenhills.
Revenues from its commercial centers rose 10% to P9.7 billion, contributing the biggest to the company’s top line at 31%. The growth can be traced to RLC’s stable same-mall rental revenues and the added revenues from its four new malls opened last year.
RLC’s residential division contributed P7.1 billion to increase 9% year on year, while the industrial and integrated developments division added P293.9 million or a decline of 89% from a year ago.
Capital expenditures of the company stood at P18.69 billion at end-September, which went to the development of malls, offices, hotels and warehouse facilities, acquisition of land and construction of residential projects.
Shares in RLC increased 60 centavos or 2.27% to close at P27 each on Tuesday. — Denise A. Valdez
