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Robinsons Land profit at P4B

Posted on January 16, 2012 10:49:20 PM [ BusinessWorld Online ]

PROPERTY DEVELOPER Robinsons Land Corp. reported a double-digit boost to its net income for the 2011 fiscal year versus the previous year on the back of growth in all its business segments, documents filed with the Philippine Stock Exchange showed yesterday.

The Gokongwei-led firm hiked its net profits by 10% to P3.97 billion in the fiscal year ending September last year versus P3.60 billion for 2010, buoyed mainly by robust revenues from the company’s residential and commercial developments.

This result mirrored the Robinsons Land’s 10% net profit growth in fiscal year 2010 over P3.27 billion in fiscal year 2009.

Total gross revenues for the period rose by 18% to P13.34 billion from P11.30 billion year-on-year, while total costs and expenses grew by 21% to P8.49 billion from P7.03 billion.

The company’s commercial centers division, which accounted for 47% of Robinsons Land’s total profits, hiked its revenues by 8% to P6.23 billion versus P5.74 billion last year.

“Rental escalations and strong take up of leased areas of the company’s mall space after renovation and expansion work of existing malls increased the rental revenues.

Robinsons Land expects that the revenues and operating cash flows generated by the commercial centers business shall continue to be the driver for the company’s growth in the future.” Robinsons Land said.

Meanwhile, the company’s residential division -- contributing 34% of total profits -- realized a 41% increase in revenues to P4.56 billion versus P3.22 billion in 2010, covering the Luxuria, Residences, Communities, and Homes brands.

Higher completion rates of existing projects such The Fort Residences, East of Galleria and Woodsville Viverde, as well as higher take-up of realized revenues from new projects such as Trion Tower 1, Sonata 1 and Amisa 1 and 2 fueled this growth, Robinsons Land said.

On the other hand, revenues from the office buildings division climbed by 14% to P1.35 billion compared to P1.18 billion in the same period in 2010, mainly due to new leasable office space in Robinsons Cybergate Tower 3 and the recent completion of Cybergate Plaza.

“The company has secured a number of major customer call centers and BPOs (business process outsourcing) as long-term tenants in its office building space and has focused on attracting their business, including custom-designing its office space with call center and BPO design requirements in mind,” the firm said.

The hotels division, Robinsons Land’s smallest business segment, saw its revenues leap by 5% to P1.21 billion from P1.15 billion in 2010, anchored on the strong performance of the company’s Go Hotel in Mandaluyong City, which registered an 88% average occupancy rate in the fiscal year.

“Although the hotels division is an important part of Robinsons Land’s business, the company considers its primary value to be as a complement to its other developments. It is studying plans to increase its presence in this market segment with its Go Hotels and the possible expansion of its Summit Hotels,” Robinsons Land said.

Moving forward, the company has allotted P13 billion for capital expenditures for the 2012 fiscal year -- nearly equal to P13.9 billion for the 2011 fiscal year -- to be sourced through cash operations and debt.

More than 60% of the funding will go to malls, office buildings, and hotels, while the remainder will be earmarked for residential condominiums and housing units, the company said.

Shares of Robinsons Land fell 2.37% to P13.20 yesterday from P13.52 at its previous close. -- Franz Jonathan G. de la Fuente

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