• Lease earnings from BPO tenants lift RLC income


    ROBINSONS Land Corporation (RLC) has earned big bucks from leasing out offices to information technology and business process outsourcing tenants. RLC’s net income in fiscal year 2015 climbed 20 percent to P5.7 billion from P4.73 billion in 2014, lifted mainly by the buoyant sector.

    In its annual report to the Philippine Stock Exchange on Thursday, the property development arm of the Gokongwei family’s JG Summit Holdings Inc. said its revenues rose 16 percent to P19.73 billion as of end September 2015 from P 17.05 billion in the previous year.

    The firm said this was on the back of double-digit increases in all of its business segments, led by its office development unit.

    RLC’s office buildings posted the highest revenue growth of 45 percent to P2.24 billion in FY2015 from P1.54 billion in FY2014.

    RLC said the increase in lease income was due to its new office buildings Cyberscape Alpha and Cyperscape Beta, which were both fully occupied as of end-September 2015.

    Built in 2013 near Robinsons Galleria at the Ortigas business district, RLC’s Cyberscape towers were meant mainly for BPO companies. Cyberscape Alpha is home to a branch of US-based manufacturing conglomerate Emerson Electric.

    RLC said its office division has completed a total of 11 office buildings as of September 30, 2015, with an average lease out rate of 99 percent.

    Revenues from the firm’s Commercial Centers Division grew 13 percent to P9.12 billion from the P8.10 billion a year ago.

    “The newly opened malls in 2014 and 2015, namely, Robinsons Malolos, Robinsons Butuan, Robinsons Santiago, Robinsons Roxas, Robinsons Antipolo, and Robinsons Las Piñas contributed to the increase in revenues,” RLC pointed out. “In addition, the reopening of Robinsons Tacloban in June 2014, due to Typhoon Haiyan, contributed to the growth, while most provincial malls also posted decent growth in rental revenues.”

    RLC said it has a total of 40 commercial centers to date, with an average occupancy rate of 96 percent.

    RLC’s hotels division likewise improved last year, with a 14 percent increase from the previous year.

    The company said as of end-September 2015, it has a total of 14 hotel properties with an average occupancy rate of 69 percent.

    RLC’s residential division, meanwhile, realized P6.62 billion in FY2015, up 13 percent from P5.87 billion in FY2014, as more buyers met equity requirements.

    “Our balanced mix of investment and development components ensures RLC of stable recurring revenue,” the company said.

    RLC’s investment portfolio in commercial centers, offices, and hotels accounted for 66 percent of the company’s revenues, while its development portfolio in its four residential brands accounted for 34 percent.

    “The company’s balance sheet remains solid,” RLC reported.

    Consolidated assets were approaching the P100-billion mark as of September 30, 2015, improving further from P85.37 billion in the previous year.

    Cash stood at P1.2 billion as of end of FY2015, up from P1.1 billion a year ago.

    “The company’s indebtedness remains manageable with a net debt-to-equity ratio of 42-1 and 32-1 as of September 30, 2015 and September 30, 2014, respectively,” RLC said.

    Earnings per share in FY2015 stood at P1.39 per share, while net book value per share rose to P13.84 as of end-September 2015 from P12.81 per share a year ago.


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