Property

Robinsons Land first half earnings hit by lockdown, down 8%

Gokongwei-led Robinsons Land Corp. saw its first semester earnings decline by 8% to P3.7 billion with sales dragged down by the lockdown measures imposed to contain the spread of COVID-19.

Revenues rose 3% to P15.4 billion but this was not enough to offset the decline in residential and commercial leasing sales.

The residential division saw its sales take up dive 52% to P4.7 billion during the period.

Shopping malls registered a 42% drop in revenues to P3.8 billion due to waived rentals for non-operational tenants and rentails discounts provided during the start of the strict quarantine mid-March.

The office buildings segment, one of RLC’s most stable divisions, recorded the highest growth among the company’s businesses. Revenue jumped 23% to P2.9 billion mainly because of the successful leasing activities in Cyber Sigma in BGC, Zeta Tower and Exxa Tower in the Bridgetowne Estate, Cyberscape Gamma in Ortigas and work.

Robinsons Hotels and Resorts Division (RHR) was the second business unit that was heavily affected by hard lockdown measures as revenues declined 39% to P660.4 million.

The industrial and integrated developments division remains resilient with revenues surging by 97% to P112.1 million driven primarily by its two warehouse facilities in Sucat, Muntinlupa and in Calamba, Laguna.

As of the end of first semester, RLC’s financial position remains solid with over P18.1 billion of cash, and net gearing ratio further improved to 0.33x. Total assets stood at PHP209.1 billion.

“Even with the full impact of the quarantine in the second quarter, all our business units managed to be EBITDA positive. Moving forward, the improving trend gives us optimism that the economy is on its way to recovery. We continue to seek opportunities and innovative new ways of doing business to deliver long- term sustainable value to all our stakeholders,” said RLC president and CEO Frederick D. Go.

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