Robinsons Land Unsp/Adr

Ladies and gentlemen, good afternoon and welcome to Robles & Slam Corporation's first nine months 2025 Analyst Briefing. Joining us today are our President and CEO, Ms. Maidel Socorro V. Aragón-Gobbio, Mr. Parabén Digo, Deputy Vice President and General Manager of the Mouse Division, Mr. Kermit Tan, our Chief Finance Officer, and the rest of the Investor Relations Team. I'll be your host, Mr. Ronald Digo, We will walk you through the company's financial and operational performance for the period. Presenting with us are Mr. Kermit Tan and Mr. Ramon Rivero, Chief Strategist and Sustainability Officer. After the presentation, we will open the floor for the Q&A session. Thank you. Before we proceed, I'd like to draw your attention to this disclaimer. The information in this presentation is for informational purposes only. Certain statements are may be forward-looking and actual results of deeper material due to various risks and uncertainties. We encourage you to review our disclosure and refer to our official filings for more detailed information. Now, let's begin the presentation. Mr. Kerwin, you may start.

Good afternoon. Thank you for joining Robinson's Land Corporation's earnings call. Can you allow us to take you through our unaudited financial results for the first nine months of the calendar year 2025? As previously highlighted, we remain committed to our vision 5-25-50, our roadmap to sustain good. This vision is anchored on five strategic levers designed to deliver 25 billion pesos in net income attributable to parents by RLC's 50th year. These five levers, as shown on the slide, form the foundation of our Vision 52550, driving RLC towards sustained profitability and long-term value creation. For the first nine months, RLC's asset portfolio continues to grow in scale and diversity. That now includes 56 operational lifestyle centers, serving as hubs of commerce and community, 134 residential developments are currently active, covering both vertical and horizontal projects. 32 office developments, anchored by our strong presence in Metro Manila and key provincial cities. 33 destination estates and mixed-use developments, driving land value creation. 27 hotels and resorts across nine brands. 13 work-able centers, and 13 in national facilities, supporting the rise of e-commerce and supply chain growth. For the nine-month period ending September 30, 2025, RLC sustained its growth momentum, posting solid results. Consolidated revenues reached 35.61 billion pesos, up 13% year-on-year, propelled by the robust performance of both investment and development portfolios. It then rose 7% to 19.03 billion pesos, while net income attributable to parents climbed 10% to 10.17 billion pesos, excluding a one-time gain recognized in the prior year. On the balance sheet side, total assets expanded 4% versus end 2024 to 273.2 billion pesos. Total liabilities contracted by 8% to 91.96 billion pesos, largely reflecting the full settlement of maturing obligations, which in turn lowered total debt by 21% to 41.91 billion pesos. Total equity strengthened 12% to 181.24 billion pesos, with parent equity likewise up 12% to 173.86 billion pesos. From a cash flow perspective, RLC generated 19.94 billion pesos in operating cash flow, raised 13.96 billion pesos from two successful block placements, and invested 15.19 billion pesos in capital expenditures to support ongoing developments and future growth. Earnings per share for the nine-month period stood at 2 pesos and 11 centavos per share. RLC delivered another strong quarter in the third quarter of 2025, building on its year-to-date momentum. Revenues reached P12.58 billion, a 5% increase quarter-on-quarter and 25% higher year-on-year, driven by sustained growth across both investment and development portfolios. EBITDA came in at P6.5 billion, up 4% from the previous quarter and 17% from the same quarter last year. Consequently, net income attributable to parent rose by a remarkable 19% year-on-year growth to 3.3 billion pesos, demonstrating enhanced profitability from core operations. From a financing and investment standpoint, operating cash flow for the third quarter was 6.65 billion pesos. RLC generated 7.75 billion pesos inclusive from another successful block placement during the quarter. second for the year, and deployed 6.01 billion pesos in capital expenditures, consistent with its long-term growth plan. Earnings per share for the quarter registered at 69 centavos per share. For the first nine months of 2025, RNC reported consolidated revenues of 35.61 billion pesos, reflecting a 13% increase year-on-year and a notable 25% growth compared to the same quarter last year. This robust offline performance was driven by the continued momentum across our investment portfolio, particularly in malls and offices, alongside the fatiguing recovery of the residential sector. EBIT grew 7% year-on-year to 14.53 billion pesos and was 21% higher versus the same quarter last year. The EBIT growth lagged revenue expansion to higher utility expenses and additional depreciation from newly opened property. Despite the slower EBIT growth relative to revenues, net income attributable to parents rose 10% to 10.17 billion pesos for the first nine-month period, excluding the 730 million pesos gain from the investment reclassification in 2024. Net income for the current quarter ended up 3.3 billion pesos, up 19% versus the same quarter last year. The improvement was supported by a lower effective tax rate, following the inclusion of additional assets into the REIT company during the quarter. Overall, these results underscore RLC's resilience and ability to sustain profitable growth, backed by its diversified portfolio and effective execution of strategic initiatives. RLC's portfolio remains strategically weighted towards its investment portfolio, which continues to serve as the company's core revenue and earnings driver. For the first nine months of 2025, The investment portfolio contributed 74% of total consolidated revenues and accounted for 83% and 78% of consolidated EBITDA and EBIT respectively. This strong performance reflects the steady and recurring income generated by our mall and hotel properties, which comprise the bulk of the investment portfolio. Additionally, the offices and logistics segments provide meaningful contributions, further reinforcing the stability and resilience of this portfolio. Meanwhile, the residential segment sustained its recovery trajectory. Realized revenues for the first nine months were largely driven by the recognition of sales from prior years, as more contracts reached the equity threshold. This carried forward the positive momentum for the development portfolio. Focusing on the third quarter, consolidated revenues reached 12.6 billion pesos, marking a significant 25% year-on-year increase, and net income attributable to the parent stood at 3.3 billion pesos, a 19% increase from the same quarter last year. The residential segment emerged as the quarter's key growth driver, with revenues surging by 247% year-on-year. This sharp increase was fueled by the recognition of previous threshold, translating to larger conversion of standby revenues. Meanwhile, our malls and hotels maintained their upward trajectory, delivering sustained year-on-year growth, and the office revenues recorded consistently. Overall, the investment portfolio remained the dominant contributor, accounting for 72% of consolidated revenues in the third quarter. This reaffirms the portfolio's role as a resident and recurring income source, complemented by the strengthening recovery of the residential business. In September 2025, Robinson's Land successfully completed its fourth block placement of sales in its REIT company, RCR, marking it the largest fundraising transaction for a sponsor of a REIT company in the Philippine Stock Exchange as of the third quarter this year. We sold a total of 1 billion common shares the transaction price of 7 pesos and 75 centavos per share, raising proceeds of about 7.75 billion pesos, exclusive of taxes and fees. This transaction lowered RLC's ownership in RCR from 65.6% to 60.5%, creating additional headroom for additional asset injections in the during. The placement received strong investor demand, paying 3.7 times oversubscribed, against a base deal size of 4 billion pesos, or roughly $70 million, a clear indication of convenient market confidence in the RCR's portfolio, quality, and long-term prospects. The offer attracted a diversified mix of qualified buyers, composed of 80% domestic and 20% foreign investors. Overall, this successful placement not only reinforces investor confidence in RCR as a REIT platform, but also strengthens RLC's balance sheet, providing additional financial flexibility to fund ongoing and future developments. RCR continues to strengthen its contribution to the group's consolidated financial performance and inefficiency. And in view of its growing relevance, we would like to share key highlights covering its financial results, portfolio composition, and total gross leaseable area. In September 2025, RCR issued 3.83 billion shares to RLC at 8 pesos per share in exchange for 9 walls with a total transaction value of 30.67 billion pesos. This inclusion expanded RCR's portfolio to 38 premium assets, comprising of 17 offices and 21 malls, with combined gross usable area of 1.15 million square meters. For the first nine months of 2025, RCR contributed 7.62 billion pesos in revenues, representing 21% of RLC's consolidated top line, a bit that rose by 28% year-on-year, deflecting the platform's strong operating efficiency and sustained rental performance. Net income likewise grew 28% to 5.84 billion pesos, accounting for 39% as far as its consolidated net income attributable to PEREC. Revenues per share also improved by 6% compared to the same period last year, demonstrating enhanced shareholder returns. These gains were largely driven by the successful infusion of the nine months this year, along with the full period contributions from properties infused in the third quarter of 2024, further boosting RCR's income-generating capacity. As of September 30, 2025, RCR's portfolio comprises of 38 premium assets with 17 office properties and 21 malls, strategically located across 18 unique key locations nationwide. Occupancy across the portfolio remains very high at 96%. Moreover, RCR maintains a healthy wave of weighted average fees expiring of 4.07 years. This provides strong income visibility and long-term stability. In terms of tenant mix, 46% of lease space is occupied by BPO companies, another 46% by retail tenants, and 4% each for traditional office users and office seat leasing, underscoring a well-diversified and demand-resilient portfolio. RCR continues to be a vital contributor to RLC's recurring income and serves as a strategic platform for future asset monetization and capital recycling. I'll now turn you over to Mr. Ramon Rebeco for the operational highlights for business unit.

Thank you, Mr. Kerwin Tan. In the first nine months of 2025, I am pleased to share that we continue to build on our growth trajectory posting total revenues of 14.55 billion pesos, an 11% increase from the previous year. This momentum was anchored by strong rental performance, with rental revenues reaching 10.27 billion pesos, up 10%, driven by a steady 7% same-wall rental growth and sustained recovery. Profitability also strengthened, with EBIT rising to 8.78 billion pesos and EBIT reaching 6.10 billion pesos, reflecting year-on-year increases of 11% and 14% respectively. Operational performance remains solid, as we maintain 94% occupancy, higher than the industry average of 92.3%. Today, Robinson's Mall spans 1.7 million square meters of leaseable space, underscoring the continued confidence of our tenants and the resilience of our consumer activity. For RLC offices, we sustained a stable performance in the first nine months of 2025, generating 6.24 billion pesos in revenues, up 5% year-on-year. This growth was supported by consistent rental escalations across our expanding portfolio of premium office developments. Our EBIT declined to 4.93 billion pesos, while EBIT reached 4.06 billion pesos, both up 3%, underscoring our strong operational efficiencies. This reinforces our view that our offices have already bottomed out and are on a positive trajectory toward further growth. Occupancy improved by 100 basis points to 88%, driven by the entry of new tenants. BPO firms remain our key anchors, accounting for 81% of total occupancy while our will stands at 4.11 years, reinforcing the long-term stability of our recurring income. In the third quarter, we proudly opened new work table centers in Robinson Summit Center 3, Robinson Summit Center 4, and GBF Tower 1, adding 770 new seats and bringing our total to over 3,200 seats. our commitment to flexible workspace solutions and supporting the evolving needs of businesses. For Robinson's hotels and resorts, we delivered a 10% increase in revenues, reaching 4.74 billion pesos, driven by strong performance across all brands, particularly our international hotel partnerships, Our system-wide occupancy stood at 66%, reflecting sustained travel demand and strong guest volumes. EBITDA grew 12% to 1.43 billion pesos, while EBIT rose 11% to 764 million pesos, supported by enhanced operating leverage. Notably, around 70% of total revenues came from our international grants and luxury hotels. highlighting our strategic shift towards higher-yield assets. With the opening of NuStar last May, RHR's portfolio now includes 27 hotels with over 4,000 room fleas, further solidifying our presence in the hospitality sector. In the first nine months of 2025, our logistics and industrial facilities generated year on year. Our EBITDA reached 600 million pesos, while EBIT stood at 438 million pesos, reflecting the continued strength of our operations. We now operate 13 industrial facilities across strategic logistics hubs in Luzon, maintaining a stable occupancy of 88% and healthy tenant demand across the portfolio. Now for our residential division, we delivered strong results in the first nine months of 2025, posting 4.06 billion pesos in net sales from organic projects, up 30% year-on-year, and an additional 2.29 billion pesos from joint ventures. Our realized residential revenue surged in the third quarter, rising 247% year-on-year to 3.11 billion pesos, driven by the recognition of prior year sales that reached the equity threshold. This momentum brought our realized sales to 7.84 billion pesos per percent. Profitability also accelerated significantly with EBITDA up 185% to 1.98 billion pesos and EBIT soaring 207% to 1.87 billion pesos. In addition, equity earnings from joint ventures contributed 912 million pesos during the first nine months. In the first nine months of 2025 for our destination estate segment, we generated 674 million pesos in property development revenues from deferred land sales to our joint ventures. Our EBITDA reached 399 million pesos, while EBIT stood at 395 million pesos, reflecting steady performance from our estate development activities. Last July 17, we at Robinson Sports Entertainment and Recreation, together with COSMAC Athletic Ventures Corporation, hold a groundbreaking ceremony for the Helios Pickleball Center in Bridgetown. The eight-story facility will span over 17,500 square meters of gross floor area and will feature 25 professional grade courts, including a stadium court, designed for major events and tournaments. It will also house six floors of sports and recreation facilities such as gyms, sports clinics, and food and beverage outlets, while two basement levels will be dedicated to parking. With estimated 1,000 daily foot traffic, we are positioning the Helios Pickleball Center as a potential venue for the Professional Pickleball Association Tour. paving the way for the Philippines to host international tournaments in the future. In the first three quarters of 2025, we spent 15.20 billion pesos in capital expenditures in line with our strategic pipeline of developments across malls, hotels, offices, logistics facilities, land banking, and residential projects. This disciplined investment approach reflects our commitment to long-term growth and continued portfolio diversification. For the first nine months of 2025, we successfully paid 13.80 billion pesos in mature debt, a key step in strengthening our balance sheet and ensuring financial flexibility. Through efficient cash management, we deem it proper to pay our maturing debt to save on interest expense and improve our cash flow. We will borrow only when the need arises. As of September 30, 2025, our total debt stood at 42.10 billion pesos, composed of 24 billion pesos in bonds and 18.10 billion pesos in bank loans, of which 2.40 billion pesos is short-term and 15.70 billion pesos is long-term. Our weighted average loan maturity remains comfortable at 2.1 years, and our effective interest rate stands at 5.8%, reflecting prudent debt management. With 73% of our borrowings under fixed interest rates, we continue to mitigate exposure to interest rate volatility while maintaining a manageable debt maturity profile in the coming years. For Robins & Smalls, we are on track to expand our total gross feasible area from 1.67 million square meters in 2024 to 2.49 million square meters by 2030, representing a 50% cumulative increase over the period. This year, we opened Robinson's Pagdatingan and will complete Bagong Silang. By 2027, our GLA is expected to grow to 1.97 million square meters, driven by the openings of Tanay and Antipolo Expansion II. 2029 will mark a major growth milestone, with a 15% growth in GLA through five new malls, and two expansions with locations in Paranaque, Shera Valley Estate, Visayas and Mindanao, and North and South Resort. And by 2030, we aim to reach 2.49 million square meters with the addition of three new malls and three expansions. Again, these developments underscore our long-term commitment to sustainable growth and a stronger regional presence across the country. our net leasable area from 793,000 square meters in 2024 to 1.28 million square meters by 2030, a 61% increase over six years. In 2025, the completion of GBF Center 2 and CyberGate Iloilo 3 will boost our footprint by 13%. We will sustain this momentum through 2026 with CyberGate to Maguete, and by 2027, the addition of Ashert Tower and Davao 1 will bring our NLA to 969,000 square meters. Further growth in 2028 and 2029 will be driven by Trillion, Bridgetown 1, Marquise, and Davao II, taking us past the 1.1 million square meter mark. And by 2030, we aim to reach 1.28 million square meters with the completion of Ferrucci Tower and Davao III. This expansion underscores our strategy to strengthen our presence in key business districts and emerging regional centers across the country. On the logistics front, RMX is contracted to more than double our gross feasible area from 295,000 square meters in 2024 to 619,000 square meters by 2030, representing a 110% increase over six years. In 2025, we will grow our footprint by 11% with new facilities in Taytay and Calamba 2E through new developments in Montclair 1, Palamba 3A, and Shera 3. Our capacity will further expand to 436,000 square meters in 2027 with new sites in Misamis Oriental, Cebu 1, Santa Rosa 1, and Obol 1. Over the next three years, we will continue building across Visayas and Mindanao, culminating in 619,000 square meters of total GLA by 2030 through projects in Southern and Central Luzon. This aggressive pipeline underscores our strong commitment to supporting logistics and industrial growth in strategic locations nationwide. and lastly for our robinson's hotels and resorts we are pursuing an equally strong growth trajectory expanding our portfolio from 4243 rooms in 2024 to 5681 rooms by 2030 a 34 increase over the period in 2025 we will open new start hotel followed by summit Pilas-Shargao in 2026. These openings will be complemented in 2027 and 2028 by key additions such as Grand Summit Cebu, Philly Hotel Bridgetown, and Grand Summit Pangasinan, which will bring our room inventory past 5,200. By 2029, the opening of Grand Summit Bohol will mark a major milestone for Grand Summit brand, an additional 220 room jump in room capacity. And finally, the completion of Grand Summit Davao in 2030 will take us to 5,681 rooms, expanding our total footprint in both established and emerging travel destinations. Through all these developments, we are reinforcing our position as a leading Filipino hospitality brand, creating properties that elevate guest experiences, support local tourism, and deliver long-term value to our stakeholders. This ends our presentation, and we are now open for your questions.