Robinsons Land Corp., the property arm of the Gokongwei group, allocated P26 billion in capital expenditures for 2021, up 17.4 percent from P22.15 billion it spent last year.
RLC said in a recent filing the programmed domestic capital expenditures this year would fund core businesses.
It said it would continue earmarking capital expenditures “for subdivision land, condominium, residential units and other real estate properties for sale, development and expansion of investment properties and property and equipment.”
The company said it would use internally-generated cash from operations and some borrowings to fund the amount.
RLC saw its net income drop 40 percent in 2020 to P5.26 billion from P8.69 billion in 2019 as consolidated revenues weakened by 17 percent to P25.40 billion from P30.5 billion.
It said development portfolio, accounting for 49 percent of consolidated revenues, increased by 30 percent to P12.26 billion. This partially offset the decline from the investment portfolio which ended at P13.15 billion, or 38 percent down from the same period last year.
“Heading into 2021, we expect to sustain the gradual recovery of our businesses as quarantine restrictions ease and consumer confidence starts to bounce back,” RLC president Frederick Go earlier said.
RLC earlier announced plans to inject its mature office assets into a real estate investment trust that will be listed with the Philippine Stock Exchange this year.
The company has 25 office buildings with total net leasable area of over 600,000 square meters.
RLC successfully sold out all the residential condominium units and townhouse components of its Chengdu Ban Bian Jie project in China.
The company expects to recognize revenues from phase 1 of the project upon completion of handover activities in 2021. Construction activities for phase 2 are on track.