1H2024 Net Income Attributable to Parent Rises by 25% YoY to PHP7.25 Bn

First-Half 2024 Key Highlights:

NIAT attributable to parent had a solid increase of 25%; excluding one-time gain - NIAT still up by 9%YoY
RLC’s investment portfolio contributed 74% of total revenue to Php15.86Bn, a 15% growth year-on-year
Residential net pre-sales posted Php6.20Bn, 8x higher from 1Q24 while joint ventures net pre-sales recorded Php7.34Bn

(Manila, 9 Aug 2024) – Robinsons Land Corporation (RLC) registered a Php7.25 billion profit in the first half of CY2024 driven by solid performance on its Investment Properties. Net income attributable to parent climbed by 25% year-on-year for the period. Excluding one-time gain on the reclassification of its GoTyme investment, net income attributable to parent reached Php6.52 billion, resulting to a 9% year-on-year growth. Consolidated revenues saw a 9% growth to Php21.33 billion compared to the same period last year.

Both consolidated EBITDA and EBIT saw significant year-on-year growth, increasing by 12% to Php12.22 billion and 14% to Php9.44 billion, respectively. Margins also improved to 57% for EBITDA and 44% for EBIT, up from 55% and 42% in the same period last year, reflecting a 200 basis point increase.

RLC’s investment portfolio had an impressive double-digit topline growth in the first six months of 2024. Composed of the malls, offices, hotels and warehouse segments, revenues jumped 15% versus same period last year to Php15.86 billion, which accounted for 74% of the consolidated revenues.

Furthermore, Its development portfolio registered Php5.47 billion in realized revenues in the first half of 2024 driven by revenue recognition from residential division and earnings from equity shares in Joint Venture projects.

RLC continued its financial stability with cash and cash equivalents of Php9.41 billion, and a net gearing ratio of 30% as of 30 June 2024. Total assets sustained at Php249 billion, while Shareholders’ Equity ended at Php154 billion; increasing its book value to PHP30.23 per share.

"We are pleased to report a strong net income growth for the first half of the year. This is a testament to the timely implementation of our strategic initiatives and our sustained operational excellence. We remain committed to delivering value to our customers and shareholders and we are optimistic about our growth prospects for the remainder of the year," said RLC Chairman, President and CEO Lance Gokongwei.

Robinsons Malls’ revenues increased by 12% to Php8.71 billion on the back of strong rental revenues driven by higher consumer spending. EBITDA rose 16% to Php5.34 billion, while EBIT rose by 27% to Php3.68 billion year-on-year. Meanwhile, rental revenues rose by 14% to Php6.23 billion. Total mall leasable space currently stands at 1.62 million square meters with over 8,400 retailers.

Robinsons Offices improved topline result with a 6% rise in revenues to Php3.92 billion in the first six months of 2024. This better performance is primarily driven by the rental growth in majority of its high-quality office developments and with occupancy rate improving to 86% from 84% during first three months of the year. Meanwhile, EBITDA and EBIT registered Php3.12 billion and Php2.56 billion, respectively.

Robinsons Hotels and Resorts (RHR) maintain its upward trajectory with strong growth across all brands, despite an elevated base. In the first-half of 2024, revenues surged by 42% to Php2.85 billion, on the back of solid performance across all segments. Additionally, both EBITDA and EBIT experienced significant increases, soaring by 96% and 243% to Php868 million and Php454 million, respectively. The Company’s hotels and resorts portfolio consists of 26 hotel facilities and 4 franchisees.

Robinsons Logistics and Industrial Facilities (RLX) saw a 31% increase in revenues, reaching Php385 million. EBITDA rose 25% to Php351 million, while EBIT jumped 30% to Php271 million. RLX's portfolio consists of ten (10) industrial facilities strategically located within the periphery of Metro Manila (ie. Sucat, Muntinlupa, Sierra Valley in Cainta, San Fernando, and Mexico in Pampanga, as well as in Calamba, Laguna) with a total of 244,000 sqm of gross leasable space.

Meanwhile Robinsons Destination Estate (RDE) recorded property development revenues of Php571 million for the first six months of the year from the deferred sale of parcels of land to joint venture entities. EBITDA and EBIT reached at Php345 million and Php343 million, respectively.

The residential division, RLC Residences, saw a strong recovery in net sales take-up in the second quarter, reaching Php5.45 billion—an eightfold increase from the first quarter and one of the best performing quarters in the last six years. This strong performance brings our net sales take-up to Php6.14 billion for the first half of the year.

Moreover, RLC Residences launched Mira Tower 1 located in Cubao, Quezon City with 539 units and a sales value of Php4.40 billion. MIRA is born from a commitment to crafting homes that resonate with the needs and aspirations of residents and their future families. Seamlessly integrating Nordic aesthetics with expansive open spaces, this development sets a new standard for growth-enabling spaces in the city, designed as a family-centric community near key establishments, transport hubs, CBDs, and hospitals.

For the first half of 2024, the residential division generated Php4.86 billion in realized revenues. This includes earnings of Php1.29 billion from our equity share in joint venture projects, reflecting a significant 28% year-on-year growth. EBITDA and EBIT were Php2.17 billion and Php2.11 billion, respectively.

Meanwhile, residential sales from joint venture projects decreased by 16% to Php7.34 billion as compared to the same period last year due to declining inventory.

On 5 April 2024, Robinsons Land Corporation (RLC) completed an overnight block placement of 1,725,995,000 shares in RL Commercial REIT, Inc. (RCR) at ₱4.92 per share, raising RCR's public float to 49.95%. This move allows RCR to acquire more assets from RLC's investment properties. RLC will infuse approximately ₱34 billion worth of assets; thereby, increasing RCR's leasable area by 72% this year, subject to obtaining regulatory approvals. Assets to be infused include 11 malls and 2 offices. RLC aims to maximize RCR's revenue streams and growth, intending to reinvest proceeds from its overnight block placement into value accretive local real estate projects.