Robinsons Land Corp., the property development arm of the Gokongwei group, said Thursday net income jumped 40 percent in 2018 to P8.23 billion from P5.9 billion in 2017, on strong revenue contribution from leasing and residential businesses.
RLC said in a statement the 2018 consolidated revenues rose 31 percent to P29.44 billion from P22.52 billion a year ago, while overall earnings before interest, tax, depreciation and amortization grew 30 percent to P16.20 billion from P12.48 billion.
Investment portfolio rose 14 percent to P18.16 billion, driven by the mall and office divisions.
Revenues from development portfolio also surged 72 percent to P11.28 billion, on robust sales of residential units and institutional lots.
“2018 has been a banner year for Robinsons Land as both our investment and development portfolios saw robust earnings growths driven by key business strategic initiatives and strong demand from our customers and buyers,” said RLC president and chief executive Frederick Go.
The group’s mall business which contributed 41 percent to the company’s total revenues posted P11.9 billion in revenues, up 11 percent from the 2017 level.
RLC opened four new shopping malls to end 2018 with 51 malls.
The office division registered revenues of P4.11 billion, up 26 percent from P3.27 billion in 2017, on rental escalation and revenue contribution from new office buildings.
RLC had 20 office developments with a total net leasable area of 523,000 square meters as of end-2018.
The group’s hotel division registered a 5-percent hike in revenues to P1.98 billion as it was saddled by the weaker sales of some of its properties, pre-operating expenses of new and upcoming hotels and higher overhead expenses.
Meanwhile, the group’s newly formed warehouse business under the infrastructure and integrated development division completed its first logistics facility in Sucat, Muntinlupa City with a total leasable space of 33,000 sqm.
RLC’s residential division posted a robust growth of 33 percent with realized revenues amounting to P8.69 billion. Sales take-up surged 49 percent year-on-year to P15.3 billion driven by new project launches.
RLC also commenced pre-selling its residential development in Chengdu, China. It said 95 percent or 759 of 795 condominium units were pre-sold.
The property firm said it was expecting to start recognizing revenues from the Chengdu project next year.
RLC spent P23.4 billion last year. The company has 754 hectares of land bank across the Philippines.