Consolidated revenues rose 13 percent to P35.61 billion, driven by recovering mall rentals, steady office demand, and a surge in residential sales.
Management’s view
“Our performance this quarter underscores the strength and resilience of our core businesses. Despite a more competitive environment and strategic reinvestments, we sustained healthy profitability and expanded our revenue base,” said RLC president and CEO Mybelle V. Aragon-GoBio.
Strong growth despite on-off items
Excluding a one-off gain from its GoTyme reclassification in 2024, RLC’s attributable income actually grew 10 percent year-on-year, underscoring solid underlying growth.
Third-quarter earnings alone jumped 19 percent to P3.3 billion, while consolidated EBITDA climbed 7 percent to P19.03 billion.
The company also strengthened its balance sheet, cutting total loans payable by 21 percent to P41.9 billion, lowering its net debt-to-equity ratio to 18 percent from 27 percent at end-2024.
Analysts' view
Shawn Atienza, AP Securities research analyst, said RLC's strong nine-month results finished above their estimates.
"RLC remains as one of our top picks, hence retaining a buy rating with a [target price] of P18.53," he said in a research note on Monday.
Boost from residential
The residential segment delivered the biggest lift, with realized revenues surging 247 percent in the third quarter to P3.11 billion as prior-year sales hit completion milestones.
This brought total realized residential revenues to P7.84 billion for the nine-month period, up 76 percent year-on-year
Malls on top
RLC’s investment portfolio, led by its malls and offices, expanded 9 percent, while its development portfolio grew 28 percent, buoyed by a 76 percent jump in realized residential revenues.
Its mall business recorded an 11 percent revenue increase to P14.55 billion, supported by 7 percent same-mall rental growth and a 94 percent occupancy rate.
Offices followed with a 5 percent gain to P6.24 billion in revenues as new IT-BPM tenants filled more space.
Healthy earnings from upscale hotels
Hotel revenues also climbed 10 percent to P4.74 billion, anchored by robust bookings at its five-star Fili and NUSTAR hotels.
On the funding side, RLC raised P7.75 billion from an oversubscribed block sale of shares in its real estate investment trust arm, RCR, the largest REIT sponsor deal in the PSE this year. As of September, RCR’s market value stood at P141.9 billion, with RLC maintaining a controlling 60.5 percent stake.
—Edited by Miguel R. Camus
