Robinsons Land Corp. said Thursday it earmarked P25.5 billion in capital expenditures this year to expand its mall, office and hotel businesses.
RLC president and chief executive Frederick Go said during the annual stockholders’ meeting this year’s capital spending would be funded by internally-generated funds and borrowings.
RLC will open one mall in Gapan, Nueva Ecija and complete the expansion of an outlet in Antipolo. These projects will increase the company’s mall gross leasable area by 3 percent to 1.62 million square meters.
The company will also open three new office developments, which will boost its office GLA to 741,000 sq. m.
RLC is set to unveil four new hotels, including Summit Naga, Go Hotels Naga, Go Hotels Tuguegarao and Summit Genreal Santos. These will hike the company’s hotel portfolio by 14 percent to 3,676 hotel rooms by end-2022.
Meanwhile, RLC also reported that its first-quarter net income fell 41 percent to P1.74 billion on lower revenues from malls and China business.
Consolidated revenues fell 60 percent to P6.7 billion as the company booked P10.45 billion in revenues from its Chengdu Ban Bian Jie project in China in the first quarter, following the completion of handover activities for Phase 1.
“The company is expecting to match this with revenues from Phase 2, which will be recognized in the succeeding quarter,” the property firm said.
Mall revenues reached P2.67 billion in the first quarter, up 19 percent year-on-year on improved consumer spending and retail sales.
“Encouraged by increasing consumer activity in the retail sector, the company is optimistic that mall operating fundamentals will sustain a sharp recovery,” the company said.
The office business also posted a 12-percent growth in revenues to P1.77 billion in the first quarter, while hotels registered a 30-percent increase in sales to P335 million. The residential business posted a 31-percent decline in sales to P1.41 billion.
The share price of RLC dropped 0.96 percent Thursday to P18.62.