Robinsons Land Corp., the property unit of the Gokongwei Group, earmarked P27 billion in capital expenditures this year mainly to fund expansion of leasing and residential projects as well as land banking activities.
This year’s programmed capital spending is slightly higher than the P25.4 billion it spent in 2019.
Robinsons Land said in a recent analysts’ briefing it was lining up the opening of a new mall in La Union this year and the expansion of the Dumaguete and RP Antipolo malls. These mall opening and expansion will increase leasable space by three percent to 1.618 million square meters from 1.573 sq. m. as of the end of 2019.
For office development, the property company is scheduled to complete four new buildings that will boost office leasing place by 14 percent to 677,000 sq. m. by the end of 2020.
Robinsons Land is set to open four new hotels, namely Summit Naga, Go Hotel Naga, Go Hotel Tuguegarao and Westin.
The opening of the four new hotels would boost the company’s hotel portfolio to 3,626 room keys by the end of 2020 from 3,129 rooms in 2019.
For the industrial and integrated division, Robinsons Land is complete the expansion of warehouse facilities in Sucat and Calamba.
Robinsons Land had a land bank of 786 hectares with an estimated value of P45.1 billion as of end 2019.
The company said it would continue to scout for strategic land banks across the country for future development.
Robinsons Land in 2019 spent P23.4 billion, with P10.76 billion going to investment, P9.05 billion on development and P5.57 billion for land acquisitions.
Robinsons Land reported earlier reported net income climbed six percent in 2019 to P8.69 billion from P8.22 billion in 2018.
Consolidated revenues inched up 3.4 percent to P30.58 billion from P29.56 billion a year ago, mainly driven by increasing recurring rental businesses.
The investment portfolio contributed 69 percent or P21.14 billion to the company’s total consolidated revenues while development portfolio took up 31 percent or P9.45 billion.
The property firm deferred the revenue recognition of its China project amounting to P8.84 billion in order to adopt the accounting standard practiced in China.