Robinsons Land (RLC) Q2 2024 earnings summary

Executive summary

• Net income attributable to equity holders rose 25% year-on-year to PHP 7.25 billion in H1 2024, driven by strong performance in malls, hotels, logistics, and a one-time gain from GoTyme investment reclassification.

• Consolidated revenues grew 9% year-on-year to PHP 21.33 billion, with EBITDA up 12% to PHP 12.22 billion and EBIT up 14% to PHP 9.44 billion.

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

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

• Investment portfolio (malls, offices, hotels, logistics) accounted for 74% of consolidated revenues.

Financial highlights

• Rental income rose 11% to PHP 10.1 billion, hotel operations revenue surged 42% to PHP 2.85 billion year-on-year.

• Cost of real estate sales declined 27% to PHP 1.59 billion, improving margins.

• Cash and cash equivalents increased 64% to PHP 9.4 billion as of June 30, 2024; total assets at PHP 248.5 billion.

• Net debt-to-equity ratio at 30%; net book value per share at PHP 30.24.

• Earnings per share at PHP 1.91 for H1 2024.

Segment performance

• Mall revenues up 12% to PHP 8.71 billion, with 20% growth in foot traffic and 12% increase in tenant sales; EBITDA up 16%.

• Office revenues up 6% to PHP 3.92 billion, occupancy at 86%; EBIT down 3%.

• Hotels and Resorts revenues surged 42% to PHP 2.85 billion, driven by higher occupancy; EBITDA up 96%.

• Logistics revenues up 31%, with new facilities contributing to growth.

• Residential segment net pre-sales at PHP 5.5 billion in Q2, with PHP 53 billion in unbooked revenues and unsold inventory valued at PHP 27 billion (standalone) and PHP 22 billion (JV).