RLC’s FY net income jumps 29% to P3.2 B
James A. Loyola
Manila Bulletin
January 24, 2009
Robinsons Land Corporation reported a 29 percent
jump in audited consolidated net income by the end of its fiscal year 2008
(October 2007 to Sept 2008) to P3.15 billion.
The firm said in a disclosure to the Philippine Stock Exchange that this
growth in net income came on the back of a 26 percent increase in revenues to
P11.18 billion this year, from P8.89 billion last year.
RLC reported that strong rental and sales, which were up 35 percent, was
tempered by flat revenue growth for hotels and the decrease in interest income
because of the IPO proceeds in the previous year and lower accounting
adjustments.
RLC showed good net income before tax growth of 10 percent year on year to
P3.76 billion, due to controlled general and administrative expenses.
In 2008, the net income includes an extraordinary adjustment to reduce
provision for deferred income tax amounting to about P300 million. The
adjustment was necessitated by the reduction of the legislated corporate
income tax rate starting January 2009 from 35 percent to 30 percent.
"Our balanced mix of investment and development components ensures RLC of
stable recurring revenue even during property down cycles," RLC officials
said.
For 2008, investment and development properties contributed 51 percent and 49
percent to total revenues, respectively.
The Residential Buildings Division grew revenues by 69 percent to P4.76
billion, brought about by higher realized sales of condominium units in East
of Galleria in Ortigas, Gateway Garden Ridge and Gateway Garden Heights in
Pioneer, Mandaluyong and Otis 888 Residences in Manila.
Net income before tax for this division rose by 8 percent to P1.12 billion for
the period.
RLC’s Commercial Centers division posted revenues of P3.70 billion for the
period, up 4 percent from last year due to the rental contributions of
Robinsons Galleria, Robinsons Metro East and Robinsons Place Ermita in Manila.
Net income before tax from commercial centers was P1.58 billion, up 9 percent
against last year due to better cost control and improved tenant mix.
The Office Buildings Division reported revenues of P883 million, a 24 percent
growth year-on-year due rising revenue from the rental of our six office
properties to call center and business process outsourcing operations.
Today, RLC is one of the leading providers of Business Process Outsourcing and
call center space in the country. Net income before tax increased to P616
million, a growth of 24 percent over the same period last year.
The Hotels division posted revenues of P1.14 billion, up 3 percent from the
P1.11 billion it posted in the same period last year. The hotels division
revenues grew 3 percent but excluding shuttered hotels, grew by 8 percent.
The increase in hotel revenues was principally due the growth in revenues of
Crowne Plaza Hotel. RLC’s hotel properties reported good occupancy rates in
FY08 and net income before tax also grew by 3 percent to P192 million. The
Housing and Land development division posted realized sales of P704 million
for the period, basically flat year on year due to construction completion.
The division posted a net income before tax of P259 million.