Profiling: Robinsons Land Corporation (PSE: RLC)

Robinsons Land Corporation (RLC, the Company) business is divided into four divisions: 1) Commercial Centers or shopping mall operations 2) Residential Division 3) Office Buildings and 4) Hotels Divisions. Below is the share in revenue contribution of each division as of the fiscal year end of September 2012:

RLC1 RLC2 RLC3

RLC’s Commercial Centers Divisions operates 32 malls as of September 2012 of which 7 malls are located within Metro Manila. RLC’s total leasable space is 910,000 sq. m. a 12% increase from the prior year which they claim to be 95% occupied. The Company claims the balance its core tenants mix and the shopping experience in Robinsons Malls to be the strength of its mall operations against competitors.

RLC’s Residential Divisions has four brands:

  1. Robinsons Luxuria – For the high-end market that provides luxurious living experience.
  2. Robinsons Residences – Real estate developments located in prime urban locations.
  3. Robinsons Communities – For middle income segment that provides condominium develpments.
  4. Robinsons Homes – For C – B income segment that caters start-up families, growing families, or full nesters.

As of September 2012, Robinsons Residences contributed most in terms of net sales reservations with 54% of total Residential Division sales while Robinsons Homes posted the most growth with 36% increase in net sales reservation. As of June 2013, Residential Division increased their contribution in the total revenues of RLC to 38% from 32%. This is mainly due to the aggressive growth of the division which posted 42% increase in revenues and 51% increase in earnings before interest, taxes, depreciation, and amortization (EBITDA).

RLC’s Office Building division claims to be the leading business process outsourcing (BPO) office space provider with total leasable office space of 251,000 sq. m. RLC has 193,000 sp. m. leasable office space from 8 office buildings and 58,000 sq. m. mall space allotted for BPO companies. The Company has 78% of its leasable office space occupied by BPO companies boasting 99% occupancy rate. Maintaining a bullish stance in the BPO industry, the Company is constructing two more office buildings, Cyberscape Alpha and Cyberscape Beta, which will both be completed in 2013 and each building will bring 40,000 sp. m. leasable space or a total of 80,000 sq. m.

RLC’s Hotel Division owns and operates hotels in three brand segments:

  1. International deluxe – under the brand are hotels in the Galleria complex, Crowne Plaza Manila Galleria and Holiday Inn Manila Galleria, which is managed by the Intercontinental Hotels Group.
  2. Mid-market hotel brand – carries the full-service hotels Summit Hotels, namely Summit Ridge Tagaytay and Summit Circle Cebu.
  3. Essential service hotel – under the brand is Go Hotel. Go Hotel is a hotel chain that RLC preferably build adjacent to Robinsons Malls around the country. Go Hotel operates on a “Book Early, Pay Less” pricing model that is offered in an internet-based booking system. Go Hotels has a combined room inventory of 639 rooms as of September 2013 which they plan to expand to 1,100 rooms in 2013. The hotel chain averaged 69% occupancy rate as of June 2013.

As of June 2013, RLC’s hotel division contributed 9% of the Company’s revenues and posting year on year growth of 21% EBITDA due to the turnaround of Summit Circle Cebu hotel operations.

Disclaimer: I do not claim to be an expert and nothing I say should be taken as a recommendation to buy or sell. Read more in the ABOUT page.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s