(Source: By Kathleen A. Martin (The Philippine Star) | Updated June 4, 2015 )
Robinsons Land Corp., the property development arm of the Gokongwei family, is embarking on a program to double its income by 2019 from the P4.73-billion profit last year, its top executive said.
“We have a five-year plan to double the income from 2014 to 2019,” Frederick Go, president and chief operating officer of RLC, said during a forum hosted by the Economic Journalists Association of the Philippines and ING Bank.
The company raked in P4.73 billion in net income for its fiscal year 2014 ending September, up six percent from P4.48 billion in the same period in 2013.
Commercial operations contributed most to RLC’s revenues amid the opening of new malls across the country, while its residential business also flourished during the period.
The firm’s office buildings and hotels segments also registered increased profits amid steady demand for office space and additional Go Hotels opening during the year.
Go said the real estate firm is keen on expanding all of its businesses over the five-year period.
“We’re expanding our malls, we’re expanding our office buildings, we’re building more hotels. We’re also building more residential,” he said.
He said that for malls, the plan is to open three to four or three to five malls per year, depending on their sizes.
RLC in February raised P12 billion from a dual-tranche bond sale to be fund capital expenditure and service debt payments. The firm said proceeds will be used to refinance P8.1 billion in maturing debt and to fund working capital requirements.
The firm has allowed P17 billion for capital spending for its fiscal year ending September this year and this will be mainly used for building new shopping malls and expanding existing ones.
The property company reported a 36-percent rise in net income to P1.4 billion in the three months to December, driven by growth in its office buildings and hotels divisions, as well as profits coming from its malls and residential segments.