Robinsons Land Corp., the property unit of the Gokongwei Group, earmarked P27 billion in capital expenditures for 2019, mainly to support the expansion of residential, malls and office spaces.
RLC said in a filing with the Philippine Stock Exchange this year’s programmed capital spending would be funded through internally generated cash from operations and borrowings.
“The earmarked amount is for the continuing capital expenditures of the company for subdivision land, condominium, residential units and other real estate properties for sale, development and expansion of investment properties and property and equipment,” RLC said.
The capital spending program is 15.8 percent higher than the actual expenditures of P23.4 billion in 2018, which went to the development of malls, offices, hotels and warehouse facilities, and the acquisition of land.
RLC said the hotels and resorts group would add 635 rooms to its portfolio. The five new hotels that will open are Dusit Thani Mactan Cebu, Summit Hotel Greenhills, Summit Hotel Naga, Go Hotel Naga and Go Hotel Tuguegarao.
“Robinsons Hotels and Resorts will continue to build hotels in key locations aiming to become the largest hospitality group with the widest variety of brands and formats in the country,” the property company said.
The company plans to complete six office buildings located in key cities across the country over the next two years. RLC as of end 2018 completed 20 office developments.
RLC said the company had four new shopping malls and three expansion projects in the planning and development stage for completion in the next two years.
“The company’s business plan for the Commercial Centers Division over the next five years, subject to market conditions, is to sustain its growth momentum via development of new shopping malls and expansion of existing ones,” RLC said.
RLC reported a net income of P8.23 billion in 2018, up 40 percent from P5.9 billion in the previous year, on strong revenue contribution from the leasing and residential businesses.
Consolidated revenues rose 31 percent to P29.44 billion from P22.52 billion, while overall EBITDA grew 30 percent to P16.20 billion from P12.48billion in 2017.
Investment portfolio rose 14 percent to P18.16 billion, driven by malls and offices divisions.