Malls, hotels lift Robinsons Land income by 13%

Gokongwei-led developer Robinsons Land Corp.’s (RLC) earnings in the first nine months of the year reached P10.01 billion, representing a 13-percent growth, on the strong performance of its malls and hotel businesses.

In a stock exchange filing on Thursday, RLC said, however, revenues inched up by just 4 percent to P31.42 billion as a decline in the residential business tempered growth.

“Our earnings for the first nine months have demonstrated agility, with continued positive growth in our bottom line,” RLC chair, president and CEO Lance Gokongwei said in a statement.

The company’s investment portfolio, composed of malls, hotels, offices and warehouses, continued to be the main income driver as the segment’s revenues jumped by 14 percent to P24.05 billion, representing 77 percent of the group’s total.

Heightened consumer spending pulled up rental income, occupancy and tenant sales in Robinsons Malls, resulting in a 12-percent climb in revenues to P13.16 billion.

Rental revenues rose by 13 percent to P9.35 billion following the opening in July of Opus Mall, the company’s newest commercial development in Bridgetowne Estate. The company now has a total mall leasable space of 1.68 million square meters with around 8,500 retailers.

Robinsons Offices’ top line, meanwhile, inched up by 7 percent to P5.92 billion also on rental growth. Occupancy rate was at 86 percent.

Property investment management firm Colliers Philippines projected office vacancy in Metro Manila to reach 20.5 percent by the end of the year, due mainly to the exit of Philippine offshore gaming operators.

Meanwhile, the hospitality unit under Robinsons Hotels and Resorts (RHR) had a 33-percent surge in revenues to P4.32 billion on the back of gains from its international brands and Cebu-based luxury hotel, Fili.

RHR currently has 30 properties across 20 cities and municipalities in the country, including budget hotel chain Go Hotels and Holiday Inn Manila Galleria.

Revenues of Robinsons Logistics and Industrial Facilities likewise soared by 36 percent to P649 million, on fresh contributions from its newly opened Sierra Valley Estate.

Revenues in residential business under RLC Residences slipped by 23.5 percent to P6.46 billion, reflecting a challenging environment for the middle-income sector.

”We remain optimistic about our overall growth prospects, as our business segments are resilient and sustainable,” Gokongwei said.