RLC eyes REIT listing in ’21; profit down 40%

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    Robinsons Land Corp. (RLC) may list its real estate investment trust by next year.
    The Gokongwei-led real estate group said it plans to fold into its planned REIT offering “a significant number of its existing office buildings” from its 25 sites, which has total net leasable area of over 600,000 square meters (sq.m.)

    There were no other details.

    Over the weekend, RLC said it closed the first nine months of the year with profit of P4.4 billion, down 40 percent from last year’s P7.31 billion.

    This was achieved over revenues of P20 billion, down 11 percent from last year’s P31.18 billion.

    “The company’s development portfolio, accounting for 49 percent of consolidated revenues, increased by 33 percent to P9.84 billion to partially offset the decline from the investment portfolio which ended at P10.17 billion, 33 percent lower versus the same period last year,” RLC said.

    The company said as quarantine restrictions are slowly lifted and more industries start to reopen, its core businesses, primarily its malls, “are noting upswings in consumer demand and beginning to show signs of recovery.”

    “We are encouraged by the steady recovery of our businesses on the back of improving trends seen on a quarterly basis, as well as in October. Increasing customer engagement and the sustained interest from external partners give us confidence that business will continue to pick up in the coming months. For the remainder of the year, we will continue to focus on operational recovery while implementing strict safety protocols,” said Frederick Go, RLC president.

    The company said its commercial centers division registered P4.8 billion in revenues in the first nine months. It continues to provide rental concessions and discounts to support partner tenants during this challenging time.

    The office buildings division meanwhile posted posted revenues of P4.34 billion for the period, up 20 percent.

    “The office buildings division continues to increase leasable space and expand its portfolio of flexible workspaces under the work.able brand, which currently has operational sites in Pasig and Quezon City,” it said.

    RLC’s residential division posted revenues of P9.75 billion, up 36 percent with sales takeup at P5.96 billion.

    Earlier in the year, the company launched three new projects worth P10 billion – the Sapphire Bloc South in Ortigas Center and Sierra Valley Gardens Buildings 1 and 2 located in Cainta, Rizal.

    The industrial and integrated developments division (IID) posed revenues of P164 million, up 101 percent, driven primarily by its two warehouse facilities. IID currently has total industrial buildings leasable space of 77,000 sq.m. and continues to add more to its portfolio.

    The company’s hotels and resorts division at the same time posted revenues of P856.4 million.

    “As we navigate the path to recovery, we will continue to provide relevant solutions to evolving needs and aspirations in the new norm, while prioritizing the health, safety and well-being of our employees and customers. Together with our partners, we will work towards strengthening corporate agility and sustainability to deliver value to our stakeholders,” Go said.