Robinsons Land keeps expanding as 9-month profit rises 11% to P13.4B

Insider Spotlight 

• Robinsons Land's nine-month profit rose 11 percent to P13.4 billion as its property businesses expanded.
• The company generated P8.1 billion in free cash flow after spending P14.6 billion on new developments.
• Debt declined as malls delivered steady earnings and logistics operating profit surged 43 percent.

Robinsons Land Corp. (RLC) continued expanding its property portfolio while growing nine-month net income by 11 percent to P13.4 billion, supported by steady mall earnings, stronger residential revenues and a fast-growing logistics business.

The Gokongwei Group's property arm generated P38.5 billion in revenues, up 8 percent, while earnings before interest, taxes, depreciation and amortization (EBITDA) climbed 6 percent to P20.2 billion.

RLC shares slipped 0.25 percent to P16.18 on Friday, compared with the benchmark Philippine Stock Exchange Index's 0.28 percent decline. The stock remains up 9 percent over the past 12 months.

Management's view

“RLC delivered another period of solid earnings growth, underpinned by the resilience of our recurring income businesses and the strength of our balance sheet,” RLC president and CEO Mybelle Aragon-GoBio said in a statement on Friday.

“The continued expansion of our malls, offices, hotels, and logistics portfolio provides us with a growing and stable earnings base, while our development businesses create additional value through strategic project execution. As we continue to invest for future growth, we remain focused on delivering sustainable returns and long-term value for our shareholders,” she added.

Cash flow fuels expansion, debt reduction

Robinsons Land invested P14.6 billion in new developments during the period while generating P8.1 billion in free cash flow after capital expenditures, providing additional resources for expansion.

The company also continued reducing its debt burden, with interest-bearing borrowings declining to P33.6 billion from P41.9 billion a year earlier.

This brought its net debt-to-equity ratio down to 0.10 times, while cash reserves stood at P14.6 billion at the end of September, giving RLC further financial flexibility for future investments.

Growth moderates

The expansion comes as growth across some established businesses becomes more measured, with overall revenue growth easing from 13 percent a year earlier to 8 percent and mall and hotel sales increasing at slower rates.

Net income attributable to parent-company shareholders also rose a more modest 4 percent to P10.6 billion as joint venture partners accounted for a larger share of consolidated earnings.

Building on its strengths

Robinsons Land directed most of its capital spending toward malls, residential developments and offices while expanding its industrial portfolio to 15 facilities covering approximately 328,000 square meters.

Its major businesses continued contributing to earnings growth:

• Malls: The group's biggest earnings contributor generated P6.3 billion in operating profit, with occupancy holding at 94 percent across 57 shopping centers. Its newly opened Dumaguete expansion was already 99 percent leased.
• Residential: Revenues climbed 15 percent to P10.1 billion, supported by project completions and previously booked sales, while combined reservations from its own projects and joint ventures reached P19.24 billion.
• Offices: Revenues grew 5 percent to P6.6 billion, with its 35 office buildings maintaining an 87 percent occupancy rate.
• Logistics: The fastest-growing business recorded a 43 percent jump in operating profit as newly completed industrial facilities began contributing more earnings.

—Edited by Miguel R. Camus