Robinsons Land Corp., the property unit of the Gokongwei Group, registered a net income of P3.34 billion in the first three months of the year, up 82 percent from the same period last year, on strong residential sales.
Robinsons Land said first-quarter consolidated revenues rose 70 percent to P11.57 billion.
The property firm said the residential business posted a 241-percent year-on-year increase in sales to P6.70 billion as it reduced the buyer’s equity threshold to 10 percent from the previous 15 percent to be more reflective of the operating performance and align with the domestic industry practice.
However, the investment portfolio, which includes shopping mall and office businesses, posted flat revenues in the first three months of the year. It attributed the lower revenues to operational disruptions caused by the implementation of enhanced community quarantine in mid-March to curb the spread of the novel coronavirus.
“RLC continues to be optimistic about its growth outlook as it builds a larger and more diversified platform. Our strong fundamentals and solid balance sheet will help us navigate the challenges brought about by the new coronavirus,” said Robinsons Land president and chief executive Frederick Go said.
“We will also seek opportunities and new ways of doing business to deliver long-term sustainable value. As we emerge from the enhanced community quarantine, our priorities are the welfare and wellbeing of our employees, business partners, and patrons,” Go added.
Meanwhile, the property company said it cut down its planned capital expenditure this year to P24 billion from original target of P27 billion.
Due to the effects of the ECQ and the expected slow transition back to normal life, Robinsons Land said projects that have not started will no longer be pursued for now.
The group spent P5.91 billion of capital expenditures in the first quarter for the development of malls, offices, hotels and warehouse facilities, acquisition of land and construction of residential projects.
The company has 788 hectares of land bank throughout the country.
The company said it is searching for properties to acquire across the country to expand many businesses. It is also open on joint venture projects with property owners and developers.