Robinsons Land Corporation (RLC), one of the leading diversified real estate companies in the Philippines, exhibited resilience and agility with recorded quarter-on-quarter improvements in key operating indicators across its business units. Net income in the 4th quarter of 2020 grew by 20% versus 3Q2020 to end at Php863 million.

RLC closed the full year of 2020 with EBITDA of Php13.68 billion and Net Income of Php5.26 billion. Consolidated revenues registered at Php25.40 billion, down 17%. The Company’s Development Portfolio, accounting for 49% of consolidated revenues, increased by 30% to Php12.26 billion to partially offset the decline from the Investment Portfolio which ended at Php13.15 billion, 38% lower versus the same period last year.

Despite significant reduction in revenues, cash generation remained strong with total cash and cash equivalents ending at Php13.78 billion. All business units generated positive EBITDA, displaying the healthy state of the Company’s diversified portfolio. Net gearing ratio remains low at 0.39x. Total assets stood robust at Php215.15 billion, and Shareholders’ Equity at Php102.85 billion.

“Amid the challenges of 2020, we adopted new ways of working and embraced a mindset of innovation to continue serving our customers. We capitalized on new opportunities for growth and accelerated our digital transformation initiatives to become more agile. As the business gradually recovers from the impact of community quarantines, we will continue to support our employees, business partners, and stakeholders.” RLC President and CEO, Mr. Frederick Go said.

The Commercial Centers Division reported sustained improvements in operational GLA, number of operational tenants, and foot traffic in the fourth quarter. For CY2020, consolidated revenues ended at Php5.96 billion, while EBITDA closed at Php4.11 billion. RLC is optimistic that the malls business will continue to rebound as quarantine restrictions ease and vaccinations start.

Through successful leasing activities on new developments and rental escalations in existing office buildings, the Office Buildings Division increased revenues by 10% to Php5.85 billion. EBITDA likewise grew 11% to Php5.08 billion, while EBIT improved by 12% to Php4.1 billion. The Office Buildings Division will continue to increase leasable space and expand its portfolio of flexible workspaces under the work.able brand, which currently has operational sites in Pasig, Taguig and Quezon City.

For its Residential Division, RLC recorded Php12.13 billion full-year revenues, 33% higher versus the same period last year. EBITDA and EBIT accelerated by 40% and 41% to Php4.17 billion and Php4.07 billion, respectively. Sales take-up reached Php7.29 billion. Earlier in the year, the Company launched three new projects worth Php10 billion – the Sapphire Bloc South in Ortigas Center and Sierra Valley Gardens Buildings 1 & 2 located in Cainta, Rizal.

Maintaining its reliability and stability, the Industrial and Integrated Developments Division (IID) grew revenues from operational industrial facilities by 90% to Php262 million driven primarily by its two warehouse facilities. EBITDA increased three-fold to Php139 million, while EBIT closed at Php86 million. For CY2020, recognized revenues from the sale of commercial and industrial lots reached Php133 million.

The Robinsons Hotels and Resorts Division achieved a quarter-on-quarter revenue growth of 16% as Dusit Thani Mactan Cebu re-opened in November and as quarantine business improved in the 4th quarter. Mainly catering to the essential business sectors and serving the need for temporary accommodation, the Hotels & Resorts Division ended 2020 with revenues of Php1.08 billion.

“Heading into 2021, we expect to sustain the gradual recovery of our businesses as quarantine restrictions ease and consumer confidence starts to bounce back. We will continue to provide relevant real estate solutions, while prioritizing health and safety”, Mr. Go added.

CHINA BUSINESS CONTINUES TO PERFORM In CY2020, RLC successfully sold out all the residential condominium units and townhouse components of its Chengdu Ban Bian Jie project in China. The Company expects to recognize revenues from Phase 1 of the project upon completion of handover activities in 2021. Meanwhile, construction activities for Phase 2 continues to be on track.

ONGOING DEVELOPMENT OF DESTINATION ESTATES The Company has 3 Destination Estates under current development. They are Bridgetowne in Quezon City and Pasig City, Sierra Valley in Cainta and Taytay City, Rizal, and Montclair in Porac City and Angeles, Pampanga.

RLC PLANS TO LIST AN OFFICE REIT RLC is looking to inject its mature office assets into a REIT Company in CY2021. It intends to publicly list the new REIT Co. within a year, subject to SEC and PSE requirements and other government regulatory approvals. Currently, the Company has 25 office buildings with total net leasable area of over 600,000 sqm.

CAPEX SPEND AT PHP22 BILLION IN CY2020 RLC spent Php22.15 billion in capital expenditures in 2020. This was utilized for land acquisitions, development of malls, offices, hotels and warehouse facilities, and construction of residential projects for its local operations.