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Thursday, January 31, 2008

Stock News 2008: Robinsons Land posts 42% profit hike to P2.44B

Robinsons Land Corp. (RLC), the real estate development arm of Gokongwei flagship JG Summit Holdings Inc., reported a 42-percent jump in net profit for its fiscal year ending September 2007, buoyed by the strong growth in its leasing operations and higher sales from residential projects.

RLC posted a net income of P2.44 billion last year from P1.72 billion in 2006. Revenues likewise grew 29 percent from P6.97 billion to P8.99 billion on record sales and higher recurring income.

“All business units performed remarkably well. Our drive to build our brand and be responsive to market demands made our performance possible. The strategic initiatives and expansion programs we had pursued in recent years continue to bear fruit,” said RLC president and chief operating officer Frederick D. Go in a statement.

RLC’s commercial centers division accounted for 39 percent of total revenues, contributing P3.54 billion or an increase of 7.9 percent from the previous year’s P3.28 billion, mainly coming from anchor malls Robinsons Galleria and Robinsons Place Manila. The improved performance of RLC’s malls in Pioneer in Mandaluyong, Bacolod and Novaliches also boosted sales of the commercial centers division.

Go said the group’s focus on recovering expenses resulted in improved profitability while operating initiatives on improving tenant mix, brand building, and improving mall facilities and amenities continued to attract a growing mix of clientele.

Five of RLC’s malls now house call centers and business process outsourcing (BPO) firms, adding to the wide geographical reach of its shopping centers around the country that made it a choice landlord for BPO companies looking for new areas for expansion, he said.

RLC recently completed The Midtown Wing, an expansion of Robinsons Place Manila and Robinsons Place Otis, a strip mall with a BPO office component adjacent to a prime residential development.
Malls currently under construction are in Bulacan, Dumaguete, Nueva Ecija and Tagaytay.

The high rise residential buildings division, on the other hand, contributed 40 percent to total revenues, posting a 60-percent rise in revenues from P2.27 billion to P3.63 billion.

“Residential condominiums and other upper middle real estate products developed by the division continue to be well received by its target markets. Strong domestic sales and the rapid expansion of its international marketing operations, now in North America, Europe and the Middle East, have boosted pre-selling efforts,” Go said.

The high-rise buildings division has 11 condominium and two office building projects, namely Fifth Avenue Place and McKinley Park Residences in Fort Bonifacio Global City; Gateway Garden Heights and Gateway Garden Ridge in Robinsons Pioneer Complex; Two Adriatico Place, Three Adriatico Place and Otis 888 Residences in Manila; East of Galleria in Ortigas Center; Woodsville Viverde Mansions Building 1, 2 & 3 and office building Robinsons Cybergate Tower 3 and Robinsons Cybergate Plaza.

The office buildings division, meanwhile, registered a 77-percent jump in lease income as all of its projects have been quickly taken up by leading BPO players. It has five office buildings located in Metro Manila’s major central business districts — Galleria Corporate Center, Robinsons Equitable Tower, Robinsons Summit Center and Robinsons Cybergate Center Towers 1 and 2.

Rental revenues amounted to P570.6 million versus the previous year’s P322.9 million, largely due to the opening of Robinsons Cybergate Center Tower 2 as well as increased occupancy rate and generally healthy rental rates in all of its office properties.

The housing and land development division recorded revenues of P715.8 million, up 39 percent from the year ago’s P514.9 million.

Zinnia B. Dela Peña
January 31, 2008

http://www.robinsonsoffices.com/jan-mar2008.html

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