Robinsons Land Corp. (RLC) reported an 8% decline in profits to P3.7 billion in the first semester as its business operations were disrupted during the coronavirus-related lockdown.
Despite a lower bottomline, the property developer said in a statement on Friday consolidated revenues increased 3% to P15.4 billion during the six-month period.
Revenues from its investment portfolio, which made up 49% of its consolidated revenues, fell 25% to P7.5 billion.
On the other hand, revenues from the development portfolio increased 59% to P7.9 billion, due to the implementation of a new accounting standard. RLC noted without the adjustment, residential revenues would be down 51%.
The residential business made up most of RLC’s revenues, jumping 66% to P7.9 billion. RLC said the segment grew despite a 52% decline in sales take-up to P4.7 billion, which can be attributed to the lockdown.
The malls business added P3.8 billion in revenues, down by 42% year-on-year, as RLC waived rent fees and issued rental discounts when malls were ordered to temporarily close during the lockdown.
The office leasing segment was RLC’s most resilient business, with revenues up 23% to P2.9 billion. The company attributed this to the continued operations of its office buildings despite the quarantine.
Revenues from hotels and resorts were down 39% to P660.4 million. The eruption of Taal Volcano in January coupled with travel restrictions due to the pandemic resulted in lower guest accommodations since the start of the year.
Revenues from warehouse operations increased 97% to P112.1 million, but weren’t enough to lift the revenues from the industrial and integrated developments division. The segment posted a 71% revenue decline to P74.1 million due to a deferred gain on sale to joint venture entity Shang Robinsons Properties, Inc.
Despite this, RLC President and CEO Frederick D. Go. said he is optimistic that the country is on its way to recovery as the company starts to see improving trends.
“We continue to seek opportunities and innovative new ways of doing business to deliver long-term sustainable value to all our stakeholders,” he said in the statement.
In the six months, RLC was able to spend P7.4 billion of its P24-billion capital expenditure allocation for 2020. It said it continues to look for properties to acquire to expand its portfolio.
Shares in RLC at the stock exchange increased 30 centavos or 2.22% to P13.80 each on Friday.