PROPERTY developer Robinsons Land Corp. (RLC)of the Gokongwei family said it plans to double its income during the next five years starting in its fiscal year 2014 as the company is increasing the capacity of all of its units.
Frederick Go, the company president and COO, said the company will expand all of its business units, which include its residential business, the performance of which in the recent years has been sluggish.
“So obviously in mall competition makes you to work harder. It’s not going to be easier. Our advantage really is that a lot of the office [spaces] that we’re building are not in areas that crowded,” Go told reporters at the sidelines of the Economic Journalist Association of the Philippines-ING Economic forum.
For its 2014 fiscal year ending September, the company had an income of P4.73 billion, slightly higher than the previous year’s P4.47 billion.
For the year, the company has allocated some P17 billion in capital expenditures, but Go said he cannot state how much it will spend for the next four years or even for its next fiscal year.
“Well, basically, you expand your business. So we are expanding all our businesses. We’re expanding our malls, we’re expanding our office buildings, we’re building more hotels, we’re also building more residential. All the core business we have, we are growing,” he said.
Most of RLC’s business are recurring income but Go said the company will also have some projects on residential. The company will launch its flagship residential project within the year.
“Right now, we are 80 percent to 85 percent recurring [income]. I think, it won’t change dramatically. There should be no dramatical change five years from now,” he said.
For the malls, which faces stiff competition against the Sy family’s SM group, the company should open about three to five malls every year to sustain its growth.
“That should be the pace. We build various sizes. But the biggest one we’re currently building now is Robinsons Galleria Cebu, which we will open this year. It will be the biggest that we will be building for the next five years,” he said.
For its fiscal second quarter ending June, the company said its net income grew 25 percent to P2.79 billion from last year’s P2.23 billion. Total real-estate revenues were up by 14 percent to P8.79 billion, from last year’s P7.66 billion.