Insider Spotlight
Net income attributable to RLC shareholders rose 5 percent to P7.2 billion.
Revenue climbed 10 percent to P25.4 billion, with malls, offices and hotels providing steady recurring income while residential and logistics expanded at a faster pace.
Robust cash position
The Gokongwei family-backed developer ended June with P13.4 billion in cash and P33.6 billion in interest-bearing debt, while its net gearing ratio remained low at 10.9 percent.
It also generated P8 billion in free cash flow, giving RLC additional funds to invest in projects while maintaining financial flexibility.
Management’s view
“Our strong first-half performance reflects the resilience of our diversified portfolio and the strategic execution of our growth strategy across all business segments. Despite a challenging operating environment, we delivered double-digit growth in revenues and consolidated net income while maintaining a strong balance sheet and healthy cash reserves,” RLC president and CEO Mybelle V. Aragon-GoBio said in a press statement.
“As we continue to see strong demand across our recurring income businesses and development portfolio, we remain focused on creating long-term value for our stakeholders through prudent investments and operational excellence,” she added.
Growth picks up in second quarter
RLC’s earnings gained more momentum in the second quarter, with net income rising 15 percent to P4.6 billion as revenue increased 9 percent to P13.1 billion.
Profit attributable to RLC shareholders grew 8 percent to P3.7 billion, helped by stronger operations and lower financing costs.
Malls anchor recurring income
RLC’s investment properties, which include malls, offices, hotels and logistics facilities, remained the backbone of the business, accounting for 72 percent of revenue and 82 percent of earnings before interest, taxes, depreciation and amortization (EBITDA).
Revenue from these businesses rose 7 percent to P18.4 billion in the first half.
Malls remained the biggest contributor, with revenue growing 6 percent to P10 billion. Office revenue increased 6 percent to P4.37 billion, while hotels grew 10 percent to P3.41 billion.
Logistics delivered the fastest growth in the recurring-income portfolio, with revenue climbing 25 percent to P561 million.
Residential steps up
RLC’s development businesses, which generate income mainly from selling properties rather than collecting rent, grew faster than its recurring-income portfolio.
Development revenue rose 19 percent to P7 billion, led by a 23 percent increase in residential revenue to P5.81 billion as construction progressed and RLC was able to book more sales as revenue.
RLC recorded P5 billion in net property sales during the first half, including P1.4 billion from its own projects and P3.6 billion from joint ventures.
RLC increased capital spending to P7.5 billion from P5.7 billion a year earlier as it pushed ahead with key projects despite making no significant land acquisitions during the period.
—Vanessa Hidalgo| Ed: Miguel R. Camus
