Robinsons Land Corp., the property unit of tycoon John Gokongwei, said Friday net income in the year ending September 2016 rose 7.9 percent to P6.15 billion from P5.7 billion year-on-year, boosted by higher revenues from malls and offices and increased residential sales.
Robinsons Land said in a filing with the Philippine Stock Exchange total gross revenues increased 14 percent to P22.51 billion from P19.71 billion a year ago.
The group’s commercial center unit accounted for P9.96 billion of the real estate revenues, up 9.4 percent from P9.10 billion on year on the opening of new malls in Cebu City, Tagum (Davao), General Trias (Cavite) and Jaro (Iloilo).
Rental revenues from office buildings division jumped 30 percent to P2.91 billion from P2.24 billion mainly due to the contribution from new office developments completed in over the past three years. System-wide occupancy rate ended at a high 96 percent as of September 30, 2016
The residential division posted revenues of P7.83 billion for the year, up 18.2 percent from P6.62 billion on year, due to a higher level of buyers meeting the equity requirement of 15 percent in recognizing sales based on the percentage of construction completion.
The hotels division, a major contributor to the company’s recurring revenues, registered gross revenues of P1.81 billion against the previous year’s P1.75 billion.
The property company attributed the 3.5-percent increase in hotel revenues mainly from new hotels, namely Go Hotels Iloilo, Go Hotels Ortigas Center, Go Hotels Butuan and Summit Hotels Magnolia.
The average hotel occupancy rate stood at 68 percent in 2016.
Real estate cost and expenses rose 19 percent to P9.34 billion from P7.84 billion a year ago, as the opening of new malls and office buildings increased the level of depreciation expense of the company.
Capital expenditures for the fiscal year ended September 30, 2016 amounted to P26.7 billion.
Share price of Robinsons Land on Friday fell P0.50 to P26.