Robinsons Land (RLC) Q2 2024 earnings summary

Executive summary

• Net income attributable to parent rose 25% year-over-year to Php7.25 Bn; excluding GoTyme gain, NIAT is Php6.52 Bn, up 9% year-over-year.

• Consolidated revenues for the first half of 2024 grew 9% year-over-year to Php21.33 Bn, driven by strong performance in investment properties and all major business segments.

• EBITDA increased 12% to Php12.22 Bn and EBIT rose 14% to Php9.44 Bn year-over-year.

• Margins improved: EBITDA margin at 57% and EBIT margin at 44%, both up 200 bps year-over-year.

• Diversified business model with resilient cash flow across malls, offices, residential, hotels, logistics, and destination estates.

Financial highlights

• Rental income rose 11% to Php10.1 Bn, while hotel operations revenue surged 42% to Php2.85 Bn year-over-year.

• Cost of real estate sales declined 27% to Php1.59 Bn, improving margins.

• Cash and cash equivalents increased 64% to Php9.4 Bn as of June 30, 2024.

• Total assets reached Php248.5 Bn, up 5% from December 2023.

• Net debt to equity ratio improved to 30% from 36% in CY2023.

Segment performance

• Malls: Revenue up 12% to Php8.7 Bn, EBITDA up 16%, EBIT up 27%; occupancy stable at 93%.

• Offices: Revenue up 6% to Php3.9 Bn, occupancy improved to 86%; EBIT down 3%.

• Hotels: Revenue surged 42% to Php2.85 Bn, EBITDA up 96%, EBIT up 243%; system-wide occupancy at 65%.

• Residential: Net sales for 2Q at Php5.5 Bn, sevenfold increase from 1Q; EBIT down 19% year-over-year.

• Logistics: Revenue up 31% to Php385 million, EBIT up 30%; completed RLX Sierra 2 with 17,000 sqm GLA.