Robinsons Land to spend same amount for capex in 2015

Robinsons Land to spend same amount for capex in 2015

By: Krista Angela M. Montealegre, InterAksyon.com

October 21, 2014 11:33 AM

MANILA – Robinsons Land Corp (RLC) expects its capital expenditures for fiscal year 2015 to remain at record levels, largely to bankroll the development of shopping malls.

On the sidelines of its 25th listing anniversary on Tuesday, RLC president Frederick Go said the property developer intends to shell out P15-17 billion in the fiscal year ending September 2015, or about the same as its record P16-billion spending program in the previous fiscal year.

"The outlook for the property industry remains very good. We had a great 3-4 year run. I think the market should be more steady," Go said.

He said RLC historically has resorted to fixed rate borrowings to partially fund its capex.

The Gokongwei-owned real estate firm is opening the expanded mall in Novaliches and new shopping centers in Las Pinas, Antique and Cebu this fiscal year, growing its gross leasable area by 11 percent year-on-year.

Robinsons Galleria Cebu will feature a mall with 76,000 square meters in gross leasable area, and a 220-room Summit Hotel. The company’s third mall in Cebu is slated to open in August 2015 and its second hotel in the city will be launched six months after.

Apart from opening four malls, RLC will also start the construction of 4-5 shopping centers.

An 82-room Summit Hotel will rise within the Robinsons Magnolia development in Quezon City. It will commence operations this quarter.

About 85 percent of the business comes from recurring income sources, with RLC taking a conservative stance on its residential operations.

“Residential is always there but we always respond to market conditions. As long as market conditions remain good, we will continue to build residential projects,” Go said.

Riding on its expansion program in the previous years, RLC expects stronger performance in the current fiscal year.

"Because of the size and volume of projects we built, the fiscal year 2015 numbers will look different," Go said.

RLC's consolidated profit jumped 6.4 percent to P3.88 billion in the October to June period from P3.65 billion a year ago.

Its performance in the nine-month period was a turnaround from the 8 percent decline in earnings in the first half due to typhoon and fire losses.

Source: http://www.interaksyon.com/business/97665/robinsons-land-to-spend-same-amount-for-capex-in-2015

For more info please visit our Robinsons Land Blogger and Robinsons Land Wordpress Websites