Robinsons eyes doubling 2014 income by 2019

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ROBINSONS Land Corp. (RLC) is aiming to double its 2014 net income in the five years to 2019 despite growing competition in the real estate sector.

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“We have a five-year plan to double income from 2014 to 2019,” President and Chief Executive Officer Frederick Go said at the Economic Journalists Association of the Philippines (EJAP­)-ING Forum on Wednesday.

The company booked P4.73 billion in net income for fiscal-year 2014 ending September, from P4.48 billion on-year.

Doubling the bottom line to P9.46 billion entails “working hard, every year, to keep building more” projects in its core business that include residential units, office towers, malls and hotels, said Go.

“Well, basically, you expand your business. So we are expanding all our businesses. We’re expanding our malls, we’re expanding our office buildings, we’re building more hotels. We’re also building more residentials. All the core business we have, we are growing them,” Go told reporters at the sidelines of the same forum.

“Generally we should be opening three to four… three to five malls every year. That should be the phase. We build various sizes. But the biggest one we’re currently building now is Robinsons Galleria Cebu,” he said, noting that Robinsons Galleria Cebu is slated to open this year.

Go declined to cite a definite spending budget under the five-year blueprint, but said the target is P17 billion to P19 billion in capital expenditures for fiscal year 2015, largely to fund malls and office building developments.

Go said recurring income is contributing 80 percent to 85 percent of its total yearly revenues, which should stay constant over the five-year window given the expansion in the non­recurring residential business.

Recently, RLC raised P12 billion in fresh funds from a bond offering to partly finance this year’s capital spending.

Incorporated in 1980, RLC is the real estate investment arm of the Gokongwei family’s JG Summit Holdings Inc. Its subsidiaries include Robinsons Inn Inc., Robinsons Realty and Management Corp., Robinsons (Cayman) Ltd., Robinsons Properties Marketing and Management Corp., Altus San Nicolas Corp., Altus Angeles Inc. and GoHotels Davao Inc.

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