3Q/9M2023 Key Highlights:
- 3Q23 Net income attributable to parent up 49%YoY to Php3.06 Bn; 9M23 net income attributable to parent increased by 31%YoY to Php8.84 Bn, excluding China, NIAT would have been up by 64%YoY
- Strong Revenue Growth across All Business Units
- Record-High Consolidated EBITDA and EBIT Margins: an impressive EBITDA margin of 55% and an EBIT margin of 42%, both reaching record highs.
- Investment Portfolio Driving Revenues Higher: 70% of RLC's revenues, came from our investment portfolio, primarily from the rapid growth of our malls and hotels businesses.
- Residential Sales Surge: Residential net sales saw a remarkable increase of 64%YoY, totaling Php17.30 Bn. Net sales from joint venture projects also rose by 81% YoY to Php12.56 Bn
- Healthy Revenue Growth in Logistics: A healthy topline growth of 17%YoY to Php477 Mn
Robinsons Land Corporation (RLC), the Philippines' premier diversified real estate company, achieved robust financial results in the third quarter of the year with net income attributable to the parent significantly increased by 49% year-on-year to Php3.06 billion. While for nine months, it reported a 31% growth in net income attributable to the parent, amounting to Php8.84 billion. This was achieved despite a high base due to the recognition of profits from our China project in 2022. Excluding the effect of the China profit from last year, the net income attributable to parent for the first three quarters of the current year would have soared to an astounding 64% year-on-year increase.
"We are delighted with the outstanding performance across our diversified portfolio of businesses. These results reflect our commitment to provide timely execution in pursuit of excellence, implement strategic initiatives, and unwavering dedication to providing quality and value to our stakeholders," said Frederick D. Go, President and CEO of Robinsons Land Corporation
RLC’s consolidated revenues reached Php30.21 billion, while EBITDA and EBIT stood at Php16.66 billion and Php12.65 billion, respectively. The combination of increased revenues and improved operational efficiencies led to register impressive high operating margins, with EBITDA at 55% and EBIT at 42%.
70% of RLC’s revenues were contributed by the investment portfolio, amounting to Php21.04 billion, with 78% of overall EBITDA (Php12.92 billion) and 71% of consolidated operating income, driven by the remarkable growth from malls and hotels businesses. The balance came from RLC's development portfolio, with revenues and EBITDA amounting to Php9.17 billion and Php3.74 billion respectively.
Financial position remained robust with total assets of Php230 billion and Shareholders' Equity of Php138 billion, an increase of 3% and 2% respectively from the December 31, 2022. As of September 2023, our net gearing ratio was 36%.
Robust Performance in the Retail Segment
Robinsons Malls, the cornerstone of RLC's retail business, demonstrated remarkable growth, with total revenues surging by 27% to Php11.78 billion, contributing 39% to the Company's consolidated revenues. The rental revenues experienced an impressive 32% increase, propelled by strong consumer spending and the normalization of business operations nationwide. Our rental revenues is already 6% above pre-pandemic levels. Record-breaking operating numbers as earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by an impressive 48% to Php7.00 billion, while EBIT soared by an astonishing 119% year-on-year to Php4.44 billion, the highest in history so far. The total mall leasable space now stands at 1.6 million square meters, accommodating over 8,000 retailers.
Thriving Hospitality Business
The tourism and hospitality sector also made substantial contributions to the Company's performance. Robinsons Hotels and Resorts (RHR) experienced a revenue surge of 134% and registered a record breaking revenue of Php3.25 billion in the first three quarters of 2023. Likewise, the revenues for third quarter 2023 alone registered a record of Php1.24 billion, surpassing the previous record achieved in 2Q2023. Revenues for the 3rd quarter increased 11% on a quarter-on-quarter basis led by Fili Hotel and Westin Manila. Higher average room rates, increased food and beverage sales, and the revival of Meetings, Incentives, Conferences, and Exhibitions (MICE) events positioned RLC's hospitality business on a trajectory for solid financial performance. For the three quarters, EBITDA and EBIT experienced impressive growth rates of 286% and 279%, respectively, reaching PHP 788 million and PHP 300 million.
Steady Growth in the Office Sector
Robinsons Offices demonstrated stable topline results, achieving a 5% growth from the previous year, totaling Php5.54 billion in the first nine months of 2023. EBITDA and EBIT stood at Php4.69 billion and Php3.91 billion, respectively. RLC's office portfolio comprises 31 office buildings with a gross leasable space of 741,000 square meters, strategically located in major central business districts, key cities, and urban areas. Notably, sixteen of these office assets had been infused into RLC's flagship real estate investment trust, RL Commercial REIT, Inc. (RCR).
Healthy Growth in Logistics and Industrial Facilities
Robinsons Logistics and Industrial Facilities (RLX) experienced a healthy topline growth of 17% year-on-year, totaling Php477 million in the first nine months of 2023. EBITDA and EBIT exhibited substantial growth rates of 29% and 34%, respectively, reaching Php445 million and Php335 million. RLX owns eight industrial facilities strategically located in Sucat, Muntinlupa, Sierra Valley in Cainta, San Fernando, Mexico in Pampanga, and Calamba, Laguna.
Robust Performance in Integrated Developments
Robinsons Integrated Developments (RID) recognized revenues of Php714 million from a portion of deferred gain on the sale of land to joint venture entities. EBITDA and EBIT settled at Php397 million and Php394 million, respectively. RID oversees RLC's three prime destination estates, including Bridgetowne, Sierra Valley, and Montclair.
Strong Real Estate Sales
New project launches significantly boosted the combined net sales take-up of RLC Residences and Robinsons Homes by 64% to Php17.30 billion in the first nine months of 2023. Realized revenues expanded by 34% to Php8.44 billion, supported by higher collections, faster construction progress, and strong equity earnings contribution from joint venture projects, totaling Php1.74 billion, a remarkable 72% increase from 2022. Residential sales from joint venture projects in 2023; namely, Aurelia, Velaris, Sonora, and Haraya, rose to Php12.56 billion, an 81% increase versus same period last year.
New Project Launches in First Nine Months of 2023:
In the same period, RLC Residences launched four new projects: Le Pont Residences in Bridgetowne, Sierra Valley Gardens' Building 4 in Cainta Rizal, Mantawi Residences' Tower 1 in Mandaue City, and Woodsville Crest Olive Building in Merville Paranaque. Robinsons Homes also introduced Springdale in San Isidro, Batangas.
RLC holds over 800 hectares of land nationwide and remains open to property acquisition and joint venture opportunities.
Bags Multiple Awards for Excellent Performance
In the opening three quarters of the year 2023, RLC has triumphantly amassed a collection of prestigious accolades that serve as a resounding testament to the company's exceptional performance. Notable among these accolades are the esteemed Property Guru Best Developer 2023, RLC's Bridgetowne crowned as the Best Mixed-Use Development of the Decade by CREBA, and the distinct honor of being recognized as the Best Employers in Real Estate for 2024 by Statista, as featured in the Inquirer. RLC has also claimed the coveted ACGS One Golden Arrow Award for 2023, underscoring its excellence in the industry.
Furthermore, Robinsons Mall has garnered the title of Sustainability Company of the Year Grand Winner at the Asia CEO Awards in 2023, solidifying RLC's commitment to sustainability and corporate excellence.
Robinsons Land Corporation continues to adapt and thrive in dynamic market conditions, positioning itself as a leader in the real estate industry in the Philippines.
About Robinsons Land Corporation
Robinsons Land Corporation (RLC) is one of the Philippines' leading real estate developers and is a subsidiary of JG Summit Holdings, Inc. RLC's diverse portfolio includes residential, commercial, and mixed-use developments, as well as hotels, offices, and industrial facilities. The company is committed to providing quality and innovative real estate solutions to its customers and stakeholders.