Robinsons Land sees 7.9% boost in 2016 income

MANILA, Philippines – Robinsons Land Corporation, the property unit of business tycoon John Gokongwei, said its net income for fiscal year 2016 grew 7.9% to P6.15 billion from the same period a year ago, boosted by higher revenues from malls and offices as well as residential sales.

In a filing with the Philippine Stock Exchange on Friday, January 13, Robinsons Land said total gross revenues amounted to P 22.51 billion for fiscal year 2016, an increase of 14.2% from P19.71 billion total gross revenues for fiscal year 2015.

The group's commercial center unit accounted for P9.96 billion of the real estate revenues, an increase of 9.4% from P9.10 billion last year due to opening of new malls in Cebu City, Tagum in Davao, General Trias in Cavite, and Jaro in Iloilo.

Rental revenues from office buildings division also grew by 30% to P2.91 billion from P2.24 billion over the same period last year, mainly due to contribution from new office developments completed in over the past 3 years. 

System-wide occupancy rate ended at a high of 96% as of September 30, 2016. (READ: Robinsons Land to open new Ortigas business park)

The residential division also posted revenues of P7.83 billion for the year, an increase of 18.2% versus P6.62 billion last year, due to higher level of buyers meeting the equity requirement of 15%.

The hotels division, a major contributor to the company’s recurring revenues, also registered gross revenues of P1.81 billion as against last year’s P1.75 billion.

The property firm said the 3.5% increase in hotel revenues mainly came from the relatively new hotels such as Go Hotels Iloilo, Go Hotels Ortigas Center, Go Hotels Butuan, and Summit Hotels Magnolia. 

The hotel average occupancy rate is 68% in 2016.

Real estate cost and expenses, however, also went up by 19% to P9.34 billion from P7.84 billion last year, as opening of new malls and office buildings raised the level of depreciation expense of the company.

Capital expenditures for the fiscal year ended September 30, 2016 amounted to P26.7 billion.

Share price of Robinsons Land on Friday, January 13 closed lower by 50 centavos to close at P26 per share. – Rappler.com