The booming domestic real estate space, coupled with solid performance on its investment properties, saw Robinsons Land Corporation (RLC) register a P7.25 billion profit in the first six months of the year. Net income attributable to the parent climbed by 25% year-on-year for the period.
Excluding the one-time gain on the reclassification of its GoTyme investment, net income attributable to the parent reached P6.52 billion, a 9% year-on-year growth. Consolidated revenues grew 9% to P21.33 billion compared to the same period last year.
"We are pleased to report a strong net income growth for the year's first half. This is a testament to the timely implementation of our strategic initiatives and our sustained operational excellence. We remain committed to delivering value to our customers and shareholders and are optimistic about our growth prospects for the remainder of the year," said RLC chairman, president, and CEO Lance Gokongwei.
Both consolidated EBITDA and EBIT saw significant year-on-year growth, increasing by 12% to P12.22 billion and 14% to P9.44 billion, respectively. Margins also improved to 57% for EBITDA and 44% for EBIT, up from 55% and 42% in the same period last year, reflecting a 200 basis point increase.
RLC's investment portfolio had impressive double-digit topline growth in the first six months of 2024. The malls, offices, hotels, and warehouse segments' revenues jumped 15% versus the same period last year to P15.86 billion, which accounted for 74% of the consolidated revenues.
In addition, the company's development portfolio registered P5.47 billion in realized revenues in the first half of 2024, driven by revenue recognition from the residential division and earnings from equity shares in Joint Venture projects.
RLC continued its financial stability with cash and cash equivalents of P9.41 billion and a net gearing ratio of 30% as of June 30. Total assets sustained at P249 billion, while Shareholders' Equity ended at P154 billion, increasing its book value to P30.23 per share.
Robinsons Malls' revenues increased by 12% to P8.71 billion due to solid rental revenues driven by higher consumer spending. EBITDA rose 16% to P5.34 billion, while EBIT rose by 27% to P3.68 billion year-on-year. Meanwhile, rental revenues grew by 14% to P6.23 billion. The mall's leasable space currently stands at 1.62 million square meters, with over 8,400 retailers.
Robinsons Offices improved its topline result with a 6% rise in revenues to P3.92 billion in the first six months of 2024. This better performance is primarily driven by the rental growth in most of its high-quality office developments, with the occupancy rate improving to 86% from 84% during the first three months of the year. Meanwhile, EBITDA and EBIT registered P3.12 billion and P2.56 billion, respectively.
Robinsons Hotels and Resorts (RHR) continues its upward trajectory with solid growth across all brands despite an elevated base. In the first half of 2024, revenues surged by 42% to P2.85 billion on solid performance across all segments. Additionally, EBITDA and EBIT experienced significant increases, soaring by 96% and 243% to P868 million and P454 million, respectively. The company's hotels and resorts portfolio consists of 26 hotel facilities and four franchisees.
Robinsons Logistics and Industrial Facilities (RLX) saw a 31% increase in revenues, reaching P385 million. EBITDA rose 25% to P351 million, while EBIT jumped 30% to P271 million. RLX's portfolio consists of ten industrial facilities strategically located within the periphery of Metro Manila (i.e., Sucat, Muntinlupa, Sierra Valley in Cainta, San Fernando, and Mexico in Pampanga, as well as in Calamba, Laguna) with a total of 244,000 sqm of gross leasable space.
Meanwhile, Robinsons Destination Estates (RDE) recorded property development revenues of P571 million for the first six months of the year from the deferred sale of parcels of land to joint venture entities. EBITDA and EBIT reached P345 million and P343 million, respectively.
The residential division, RLC Residences, saw a strong recovery in net sales take-up in the second quarter, reaching P5.45 billion—an eightfold increase from the first quarter and one of the best-performing quarters in the last six years. This strong performance has increased our net sales to P6.14 billion for the year's first half. Moreover, RLC Residences launched Mira Tower 1, located in Cubao, Quezon City, with 539 units and a sales value of P4.40 billion. MIRA is born from a commitment to crafting homes that resonate with the needs and aspirations of residents and their future families. Seamlessly integrating Nordic aesthetics with expansive open spaces, this development sets a new standard for growth-enabling spaces in the city. It is designed as a family-centric community near key establishments, transport hubs, CBDs, and hospitals.
For the first half of 2024, the residential division generated Php4.86 billion in realized revenues. This includes earnings of P1.29 billion from our equity share in joint venture projects, reflecting a significant 28% year-on-year growth. EBITDA and EBIT were P2.17 billion and P2.11 billion, respectively.
Meanwhile, due to declining inventory, residential sales from joint venture projects decreased by 16% to P7.34 billion compared to the same period last year.
On April 5, Robinsons Land Corporation (RLC) completed an overnight block placement of 1,725,995,000 shares in RL Commercial REIT, Inc. (RCR) at ₱4.92 per share, raising RCR's public float to 49.95%. This move allows RCR to acquire more assets from RLC's investment properties. RLC will infuse approximately ₱34 billion worth of assets, thereby increasing RCR's leasable area by 72% this year, subject to obtaining regulatory approvals. Assets to be infused include 11 malls and two offices. RLC aims to maximize RCR's revenue streams and growth, intending to reinvest proceeds from its overnight block placement into value-accretive local real estate projects.
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