THE real-estate arm of JG Summit Holdings Inc. announced on Wednesday that its profit last year surged on the back of higher revenues derived from its mall operations and high-rise office and residential division.
In a statement, Robinsons Land Corp. (RLC) said its net income for fiscal year 2007 ending in September jumped by 42 percent to P2.44 billion as gross revenues rose by 29 percent to P8.99 billion. The company credited the record sales of its divisions and recurring income, innovations and new markets for bolstering its financial performance last year
“All business units performed remarkably well. Our drive to build our brand and be responsive to market demand made our performance possible. The strategic initiatives and expansion programs we had pursued in recent years continue to bear fruit,” Frederick D. Go, RLC president and chief operating officer, said.
The company’s mall operations accounted for a big chunk of its gross revenues at 39 percent or P3.54 billion, which was 7.8 percent higher than the previous year. Sales from Robinsons Galleria and Robinsons Place Manila drove revenues higher in addition to the improved performance of malls in Pioneer, Bacolod and Novaliches.
In addition to retail rentals, RLC is also earning revenues from business process outsourcing (BPO) office space rentals in its five malls and the company sees this growing significantly in the next few years.
The property firm finished The Midtown Wing of Robinsons Place Manila and Robinsons Place Otis, a strip mall with a BPO office component next to its residential project, in December last year. At present RLC is completing its malls in Bulacan, Dumaguete, Nueva Ecija and Tagaytay while it is on the look out for more mall locations in Metro Manila and the provinces.
RLC’s high-rise business topped the mall operations revenue contribution for the first time at 40 percent of the total as it grew 60 percent to P3.64 billion over the previous year. The firm attributed the growth to the strong domestic sales and rapid expansion of its marketing operations in North America, Europe and the Middle East.
The firm’s office buildings have shored up P570.6 million in rental revenues, 77 percent higher than previous year, and these were mostly occupied by BPO companies in Galleria Corporate Center, Robinsons Equitable Tower, Robinsons Summit Center and Robinsons Cybergate Center Towers 1 and 2. The growth was spurred by the opening of Cybergate Center Tower 2 and increased occupancy rate and healthy rental rates.
Robinsons Homes, the property firm’s horizontal housing arm, posted a 39-percent growth to P715.8 million in revenues over the previous year. It has several ongoing projects, which include Blue Coast Residences and Aspen Heights in Cebu, Bloomfields Tagaytay, Bloomfields Davao, Richmond Hills and Monte Del Sol both in Cagayan de Oro, Mirado Dos in San Fernando and Costa Verde in Davao City.
Hotel operations also grew by 22 percent to P1.11 billion mainly due to the 260-room Crowne Plaza Hotel within the Galleria Complex while Holiday Inn Galleria Manila and Cebu Midtown Hotel continue to register “satisfactory” occupancy rates, RLC said.
As of end-2007, the company’s total assets stood at P36.78 billion, an improvement of 29 percent from the previous year. 
-- Likha C. Cuevas-Miel
[ Published by : ManilaTimes.Net ]
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