GOKONGWEI-LED real estate developer Robinsons Land Corp. (RLC) is allocating up to P125 billion in capital expenditure (capex) to fund its five-year plan of delivering P25 billion in net income by 2030.
RLC Chief Financial Officer Kerwin Max S. Tan said during a media briefing on Wednesday that more capex will be used for project development to reach the 2030 goal.
He added that RLC aims to increase earnings by 12% annually to achieve the 2030 target.
“Historically, our capex has been in the P20-25 billion range annually. I guess it would still be the same, except that previously, when we allocated P20-25 billion for capex, 20% was allocated for purchasing land,” Mr. Tan said.
“As we have the land bank in place, and potentially some more, I think more of the capex will be allocated to project development,” he added.
According to Mr. Tan, RLC’s capex will be funded through internal funds and debt.
“We have internally generated funds. If we do undertake debt, we ensure that the yields are higher than the prevailing interest rates,” he said.
RLC President and Chief Executive Officer Mybelle V. Aragon-GoBio said in the same briefing that the company has been efficient in utilizing its land assets.
“We balance it. We purchase land for say five to ten years’ use, but mostly for immediate development because it drags down your balance sheet if you’re not able to fully utilize it immediately,” she said.
Earlier this week, RLC unveiled a roadmap that aims to deliver P25 billion in net income by 2030 in time for its 50th anniversary.
One of the strategies is to expand the company’s investment portfolio, with plans to increase mall gross leasable area (GLA) by 50%, office space by 50%, hotel room keys by 25%, and double its logistics capacity by 2030.
RLC will also leverage its real estate investment trust platform, RL Commercial REIT, Inc. (RCR), to unlock capital.
The property developer will drive the premiumization of its offerings and forge new partnerships. It will also tap new business streams such as sports and entertainment centers, ecosystem synergies, and sustainability-driven customer services to enhance customer experience.
RLC recorded a 4% increase in its first-quarter attributable net income to P3.48 billion, while revenue was maintained at P11.03 billion.
On Wednesday, RLC shares closed unchanged at P12.20 per share. — Revin Mikhael D. Ochave
