RLC sees higher share of investment portfolio
Property giant Robinsons Land Corp. expects the share of its investment portfolio in its revenue mix to rise further over the next two years as it continues to beef up its recurring-income businesses.
Robinsons Land Corp. (RLC), the property giant, anticipates an increasing share of its investment portfolio in its revenue mix within the next two years. Chief Financial, Risk and Compliance Officer Kerwin Max Tan revealed the company's target of an 80 percent investment portfolio and 20 percent development portfolio. Currently, the investment portfolio, comprising malls, offices, hotels, and logistics assets, accounts for 72 percent of RLC's revenue, while the development portfolio, consisting of residential projects, contributes 28 percent.
Tan emphasized the group's focus on recurring-income assets, stating that they believe in the importance of recurring income streams. He explained that while they are not eliminating the residential portion, it is essential to complement their malls and offices. Tan further highlighted that the investment portfolio has been RLC's primary earnings driver in the first half, with revenues growing by seven percent year-on-year to P18.4 billion.
The malls segment maintained its growth momentum in the second quarter, and the office portfolio generated stable recurring earnings. The hotels and logistics segment also experienced robust growth during the period. On the development side, RLC's revenues increased by 19 percent to P7 billion, driven by improved project execution and revenue recognition from residential developments.
RLC's Vision 5-25-50 roadmap aims to achieve P25 billion in net income by its 50th anniversary in 2030, which includes aggressive expansion targets for mall gross leasable area, office space, hotel room keys, and logistics capacity.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
