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.

Thank you, Ramon and Mr. Kirwin. Some housekeeping rules for the Q&A. To ask a question, please use the raised hand first or the Q&A box. When your name is called upon to ask a question, please state your name before proceeding to the query. Thank you for your cooperation. The first question goes to Jalene with the raised hand. Can you unmute, Jalene?

Hello. Good afternoon. Thank you for hosting the briefing.

You may go.

Yes, this is Jilin Gaz again from JP Morgan. My first set question relates to the JV earnings. We noticed that it's a little bit soft for the last few quarters. Can you give or shed more light about the trends that are going on here? How much is unbooked profit so far on sold inventory? And what are you seeing in terms of cancellation trend as well as sentiment given the recent corruption scandal? That's my first question.

Hi, Janine. This is Mayabel. The sales of our JV projects have been soft in the past quarter. Cancellations have not been alarming. They're still the usual rate. So given the corruption scandals, we do see some form of softening in that particular segment. However, as we are going to be starting to turn over the first hour of our joint venture with Hong Kong Land by the first half of next year, we believe that sales should pick up again.

Thank you, Ms. Maida. Would you be able to share the unbooked profits to date and the value of unsold and vending from the JV earnings?

The standby revenue is 49.4 billion pesos. How about the JV? Standby revenues for RLC's share is 9.9 billion pesos.

And in terms of profits?

In terms of profit, it's about 1.7 billion pesos.

Okay, understood. Thank you. My second question relates to the mall revenue growth. We noticed that it's pretty strong at almost mid-teens. What do you think are you doing differently than peers? And are there any updates on the renovation extent of expected works and any disruptions expected from these initiatives?

Well, our revenue growth is coming from, for the existing malls, it's coming from three main sources. One is the increase in the fixed rent. The second one is the increase in occupancy. And the third is the increase in tenant sales. Okay, so those three are all contributing to the increases in our revenues for the same malls. And then, aside from that, we also have our new malls, which are also contributing to all those three factors for our new malls. Your second question was on the expansion.

The renovations.

Renovations. We have ongoing renovations for several malls like Dumaguete, Abacolod, Manila. These are all strategically done to minimize the effect on what our existing operations and rental for those was.

Very good. Thank you. And lastly, would you be able to share the leasing, lease-out rate or pre-leasing commitments for GPF Center 1, Center 2, and ILO-ILO 3, please? Thank you.

Hi, Jeline. So, for GPF 1, actually, as... To date, we're almost near 80% leased. For GBF2, we're looking around 60% pre-leased, while ELO-ELO3 is around 25% pre-leased.

Thank you very much. Those are all my questions.

Thank you, Jalim. The next question goes to Renz from CLSA.

Hi, good afternoon. Can you hear me?

Yes, we can hear you.

Hi, good afternoon. So this is Renz from CLSA Philippines. First of all, thank you so much for taking my question. So I just want to ask about the capital recycling program. So I think the company made roughly 14 billion pesos worth of block placements in 2025. Would you be able to share some broad guidance on the amount of private placement proceeds for 2026 onwards. That is to say, is the 14 billion proceeds something that is sustainable moving forward? And considering that guidance, how will this shape up your capital allocation decisions, considering the excess cash flows?

so will the company prioritize you know expanding capex increasing payout or buybacks so yeah that's my first question just to answer your question uh guidance on how how much can we be raised this year unfortunately we usually do not provide guidance uh because it will depend on the timing and uh quips that are will subscribe to if ever we do a block placement so in terms of usage of Of course, we will be flexible on it. It will depend on the need. If there's no need, we will pay down debt. If there's need for CAPEX, we will allocate CAPEX according to the revenue plus even the contribution of that particular business union. And also, of course, that will provide ample room for us to provide more to provide more buybacks and dividends.

Okay, understood. Thank you. On the uninfused leasing assets, this is still related on capital reciting. May I ask what the yield on cost is for the malls, offices, hotels, and industrial warehouses?

Resume, you shouldn't provide that figure for public consumption.

Okay, thank you. That's all on my end.

Okay, thank you, Renz. Next on the raised hand is Mr. Fauci from Regis. Good afternoon. Let me just check if you can hear me. Yes, we can hear you. Thank you. So I have some questions, some of which are related to the items asked by Janine. I'll start off with the mall business. It was mentioned that some of the reasons for an increase in the mall revenue was the increase in occupancy and expansion of the portfolio. For the third quarter in particular, it looks like mall revenue was up 7% quarter on quarter. And the portfolio size is the same as was occupancy. So is it fair to say that actually tenant sales improved substantially quarter on quarter in the third quarter? And if so, I'd be interested in what you would, if you can give color on which types of tenants happen to be strong or were there particular areas or malls that were particularly strong? I can add to the answer earlier. So aside from what we mentioned earlier, another thing we're doing also is we're trying to maximize the revenue of our current assets. So we do say... If we have a tenant that's not performing that well, we try to replace it with a more high-performing tenant. One other thing that we're doing also is we're increasing the FNB mix, which delivers a higher rent per square meter as against, say, another mix that would be of lower rent. Another one is we are converting some of our cinemas into retail spaces. that allow us to generate also a higher return for the space. Good, this is very helpful. Thank you. And let's say, I guess over the past year, or let's say nine months this year versus nine months last year, and even 3Q this year, it looks like mall margins have expanded quite substantially. It was mentioned in some previous briefings, you attribute at least part of that, maybe most of that to reining in utility costs. Is that still the case? Is it mostly because of utility costs? Yes. You're saying the margins increase? Yes. We think the utility cost is one of our major expenses that affect the The margins, yes. It's still a major cost of when we sign up to a new contract with a higher or lower security. I understand. And is there anything else notable that would help drive up the margins? I think in particular, the biggest domains.

Okay. Efficiencies that we... adopt across the different channels, helping in improving our margins. As to the point of Faraday about the utility cost power in particular, whenever the power cost increases, we also try to defray or to mitigate the impact by also correspondingly increasing our PUSA that we charge to our tenants so that we're able to maintain our margin spread.

Sorry, it was a little choppy. Could you repeat that? Something about PUSA?

Yeah, so when the power rate increases, we experienced that in some months in the past two quarters, we had to increase our PUSA charges that we charged to our tenants so that we're able to maintain our margin spread.

Got it. Okay, that's very helpful. That's it for the mall business. I'll ask about the residential segment this time. So, Janine asked a couple of things, and I might have missed it. Did you provide the unsold inventory of JV projects?

The sold inventory of the JVs is $16 billion.

$16 billion. Great. And... So for the JV projects, one of the things mentioned in previous briefings was that it was easier to sell large units and you have a lot of small units left. Is there anything you can do about that or what have you been trying to sell those more quickly?

But we are trying to sell the remaining smaller units by payment schemes. So we offer more attractive discounting for those particular units, and then typically those unsold units, tend to go faster as we approach the turnover of the building. So in particular, I was also mentioning when Julie asked about it, one of our joint venture projects, one with Hong Kong Land, I'm sorry, Belarus, the first hour is scheduled for turnover by the first half of next year. So we believe that that should help in moving the remaining inventory.

Got it. Thanks for that. And then on your standalone projects this time, so the reservation sales for standalone projects fell on a quarter-on-quarter basis. Just checking, you still have the same promo, right? A buyer can purchase, even be over 10 years for RFOs? That's right. So what would you attribute the decline then quarter on quarter for sales of standalone projects?

It's a combination of our having to rebuild our sales force. We've had to both right-size and also to make it a more efficient organization. We are now on a massive hiring mode, trying to rebuild the bottom layer, not the property specialists, the real sellers. So that's one. And then we're also doing targeted international marketing deployments. We've also strengthened our international marketing team, so they're now deployed to UAE, Singapore, North America, where we have always been able to generate strong sales. And then domestic sales teams have also been reorganized so that they're focusing on specific projects.

And let me clarify. So that's something, let's say, there's a reorganization that happened in 3Q. And that's why sales fell. And then you expect 4Q and onwards to be better. Do I understand correctly?

Well, that and also what was driving much of the growth for residential sales in the previous quarter was really the RFO. The one that you mentioned was the lease-to-own. We have substantially sold off some of the inventory for RFO, and we've also focused on reselling, which is a more challenging effort. But we, as we do all of these combined efforts, we believe that the next quarter should be, we should be able to post higher sales.

Understand. And I believe you, are a lot of buildings due for completion, I guess, within the next year. So really, you have a lot more RFO coming up, essentially? Yes. Okay. And then I'll ask about residential revenue this time. So for the third quarter, it picked up quite substantially. And it was mentioned that there are more contracts that reach the equity threshold. So particularly for the third quarter, it was a very large jump. And I'm just curious if Should I think of that as a new normal or it was actually a blip, it should actually come down? I think it was mentioned earlier this year that we're supposed to see better growth of residential revenue starting next year because of timing. And I wanted to check if in fact it was earlier, like it already started as early as the third quarter, or we should still see a good amount of growth for 2026 residential revenue.

trend will continue for the fourth quarter and the ensuing quarters. The third quarter recognitions are mainly from the 2021 pre-sales, reaching the equity threshold. And that coupled with the projects that we will be turning over in the succeeding quarters should contribute to the sustained growth of our realized revenues from the residential projects.

Okay. Thank you very much. Those are all my questions. Thank you, Carl. Our next question on the raise hand is Rafi Mendoza from Maybank. Rafi, you may ask your question.

Thank you for the briefing. Again, going back to the residential segment, may I know which locations are most of your 5,333 inventory currently at? Is it mostly in Metro Manila?

It's mostly in Metro Manila, yes.

Okay. And I noticed also that EBIT margin for residential was quite – there's been some compression. Is it more a function of the discounting of the RFO units sold, which led to some margin compression as of nine months to five months?

The EBIT margins are still consistent. First quarter to third quarter, they are at 23% to 25% for the organic projects.

Okay. So I would think it's from the JVs?

Yes. Sorry, I have to ask you a question. It's not from the discount that we had launched. for the focused marketing of our RF posts.

Okay, so what may be the reason for some compression? And I would think it's from the JV projects being sold?

It's the contribution from the JVs.

If you can see the JV, I have a picture for revenue storage.

Okay, so the daily contribution store. Okay, I understand. And for offices as well, there was, I mean, it's not so substantial, the dip in EBIT margin, just 1.9 percentage points on a nine-month basis. May I know the reason also for the compression?

It's a function of higher input costs, such as contracted services and power, and also added the depreciation of the new buildings.

Okay. So, from here on out, I would assume... So, commissions.

Commissions, because our wonderful team was able to propose a lot of transactions. So, we were happy to pay out commissions.

Got it. So, from commissions as well. So I would assume this level is pretty much going to be the level for next year.

The level of margins.

The margins, yes.

It should improve. While we're improving efficiencies, I think it should improve slightly back to what it was before this quarter.

Okay. Yeah, that's it for me. Thank you.

Okay, thanks, Rafi. The next on the race line is John Ogden. from Eastern Value. John, you may start your question.

Thank you, Ron and team. I've got two or three. The first couple are sort of related. You've got plans to increase your gross floor area in all sectors quite substantially and that is a 50 years as a company kind of target and so forth. but rival companies are also have aggressive plans to raise their gross floor area so there's a danger there to sort of have this plan which is all laid out and you can look at rivals they have their plans so the danger is over building and you know so that's something you have to be aware of I just wonder what your thoughts on that. I mean, is there really going to be enough business for everybody in offices, malls, and other areas like your hotels and so on? And related to that is, do you really think the strategy is correct, which is to emphasize investment properties and just have development properties as a kind of smaller sideline, given you can react to the market much faster and recycle your capital faster and, you know, go slower or faster depending on what's happening in the market. Whereas your malls, you've kind of lock in for these long periods and it's a long payback. You know, as I say, there are these rivals, the SMA and so on, who also have their aggressive plans. So that's one question. The other one is, if you look at your REITs, it's now exactly double the market cap of the parent company, which is a kind of odd situation. The yield is just a bit higher on the REIT, but the REIT is trading at book value and Robinson Land is trading at 0.4 book value. So why is that? I mean, it seems like the market is prepared to pay up for the REITs assets, they're prepared to pay book, but they're not prepared to pay book for Robinsonland. So that suggests that the assets not in Robinsonland, the REIT, are inferior. So maybe you can shed some light on that. And then just the other one is, if you could give us a bit of colour on what's happening in the office segment in general with um we've got ai coming in if that's affecting anything in either a negative or positive way and then general thoughts on you know where we are now with post uh pogos and um you know how bpo demand is going and and overall in the market with supply and demand

John, the first question will be answered by... If there were four questions, the first two I will tackle, the third I'll pass on to Kerwin, and the fourth to James. Okay, so for the first... The growth that we are laying out in our pipeline, whether there is enough of a market to absorb this, I believe so. For Robinson Smalls, maybe we can start off with that. As you know, the Philippines is a consumption-driven economy. We are geographically fragmented. There's still a lot of tier one, tier two cities in the Philippines. that are still unserved or underserved. And so Robinson's Land is typically the first mover in these areas. So we believe that this playbook will still hold and can be a sustainable growth path for Robinson's Smalls. For Robinson's offices, we likewise believe that we have reached an inflection point. It has bottomed out, and in fact, we have been getting a lot of pre-leasing requirements, expansion requirements as well. We are, of course, very careful in our expansion plans, striking a balance between doing speculative builds and built-in builds. for the Robinson's offices. For logistics, it has been sustainably strong. That's why we have projected 2x growth for the business. For hotels and resorts, we are confident that the 25% increase in our keys is on the conservative side of the realistic scenario. And so we are also banking on the improvement of our tourist arrivals as government efforts towards simplifying the visa requirements and also rolling out the VAT group fund system. will take place. So we're confident that this will be a sustainable pipeline.

Now for the second question, which is... Oh, that was about, was that the one about your 0.4 times book versus retrading at one times book?

Maybe, Kermit can take that one.

Okay, I think, so RCR now trades about 140 billion pesos of market cap. So RLC owns about 60% of 140 billion. So the way I look at it, it's actually, on the rate alone, it's 84 billion pesos already. So I think the, well, the discount to both is a function of two things, right? Number one, What we can do at our end is that's why there's a focus by the group to develop more land to monetize whatever land back that we have so that we can essentially convert this into our income statement and provide more dividends to our shareholders. And then I think the second is the discount, I think, should be – can be answered by both the buy and sell side in this group, that how to narrow the discount.

It's an odd situation.

It's an odd situation. But I guess that can be solved by both the buy and the sell side.

John, I remember your second question. It was about if we are – If our strategy is correct, focusing on the investment side of our business, I believe so because it allows us to have a stable cash flow and also it also positions us uniquely to be able to infuse our assets, our mature investment assets into the region in order to monetize those. The residential market or the developmental business remains to be an opportunistic play for the company. And then for the offices, James, can you answer?

Hi, John. So just quickly on offices, as per third quarter market reports from several brokers, vacancy is at 20%. So we're doing slightly better than market at 12% vacancy. Now, in regards to AI, I think AI has always been around, but it's just louder now. And we've been hearing from our tenants and our orgs that we talk with that they're really using it as a tool to better their efficiencies, such as training and hiring. So what we hear from them is they're using fully productivity with it, using it as a tool. And in regards to the the key call centers in the U.S., they've remained quite quiet about it because they're hoping it dies down. The incentives given in the U.S. is much lower than the savings they get here in the Philippines. It's maybe around 20% versus 80% here in the Philippines in regards to labor costs. So we're also giving a lot of confidence because of our leasing team. We've had around almost close to 200,000 of expiries this year, in which we've renewed and replaced around 94% of that Also, we're very proud to say that I think this year is the highest amount of new signups that we had, even in the height of BOGO, where we reached 100,000 square meters in new signups, in which 65% were actually ITBPM industry. So we're quite confident on the office sector.

Thank you. Also, I've got one more, if I can throw that in there. Just going back to our expansions and what have you. Now, in the latest report, we were able to play down some debt. Now, you know, we've got the REIT we can put assets into every now and again. We've got our expansions of our investment properties coming up. and then we've got dividends or buybacks and then the leverage in the balance sheet. So how is that going to play out in this plan to 2030? Is the balance sheet going to get more leveraged up or is it going to go the other way because of sales and REIT or how do you see the balance sheet evolving over that plan to 2030?

It's a function, really, of how much money do we raise from the REIT on an annual basis. But given that all things are the same, would be the same, the balance sheet would be on the same level as currently shown in terms of gearing. Of course, substantially, as part of our 25-30 plan, if we reach by 25 billion by 2020, year 2030, so that would enable, from now to 2030, that would enable us to provide more, our earnings per share will increase, and subsequently, our dividend payout will also increase.

Okay, thank you very much indeed.

Thanks, John. Now we'll go on the Q&A. The first one is from Emuel Olimpo from, so it's answered already, okay, so the second one is from So, I was then Modesto.

Answer to the radio.

Answer to the radio. From Mario Maulion. Ah, Marco Maulion, sorry. Good afternoon. Thank you for the briefing. May I know if you can provide the revenue contribution, GLA, and occupancy rate for Robinsons, Manila, and Galleria? When do you plan the process to introduce RCR? Okay. GLH for both of them combines about 200,000 square meters. And then rental income, about 21% rental income. And occupancy is more than 90%.

It's important. It will depend on the market conditions in the future.

And then a question from Jeline. How much was RCR's DPS in second quarter 2035 and PQ

So for the second quarter, DPS was 0.1049 per share. Third quarter, 0.1060 per share. For the first three quarters, we have total dividends per share is 0.3156 per share. Okay, thank you.

From Christina Ulan of First Metro, can you give more context on the high-impact strategic partnership you're cultivating in your five-year plan?

Yeah, so we're actively pursuing a number of joint ventures, alliances, and also co-investments across our different businesses. And this can – you know, it's in various formats. Let's say for the malls, it's really working with high-potential tenants. For our logistics business, it's – acquiring or co-developing facilities that will allow us to expand our portfolio. Also, for our land acquisition, it's joint ventures with other developers as well as government agencies. So together, this should allow the company to scale our executions, expand our pipelines, and also to accelerate our market entry into market segments where we're not currently playing.

Okay, question from Juan Paulo Molina. Hi, may we know the potential impact of Trump's gift call centers in America? On ILC's office development, given that the act focuses on voice-related services, do you have an estimate on the presentation BPO tenants that mainly offers this kind of service in America clients only? Thank you.

So, we'll have to get back to the exact numbers here. We have to call all our tenants to get a clear number. But just to give you an example, one of our bigger tenants, maybe around one-fourth of its actual space is dedicated to voice, while the others are more on the text and corporate functions. And a lot of our tenants service not only the U.S., but several different countries. So it will be quite a task to break down and give you an exact answer.

Okay. Last question on Q&A is from Francis Paul from VPI. Hello. Thank you. Would you like to ask if you have guidance on resi launches and take-up for both this year and next year?

Yeah, so for resi launches for the remainder of the year, we don't have anything lined up. We want to be able to sell substantially our current inventory. In the first half of 2026, we're planning to launch horizontal projects. in the provinces where we believe market demand is strong. And also for horizontal projects, revenue recognition is faster, execution is likewise faster. As to take up for this year, we are estimating we're now at We're now at $4 billion. We're estimating that we'll finish the year at $5 to $5.5 billion. For next year, given that we have already cleaned up our cancellations substantially for this year, we're looking at a much higher sales take-up. We'll provide more quality in the succeeding quarter.

Okay. If there are no further questions, I will now hand you over to Maybel to give her closing remarks.

Good afternoon again, everybody. As we approach the end of 2025, Robinson's land continues to post steady progress and solid results across its diversified portfolio. Net income for the partner group, an impressive 19% compared to the same period last year, supported by resilient recurring income streams, a strong recovery in our residential business, and strategic capital recycling through our REIT platform, a key driver of our 52550 objective. The infusion of additional mold assets into RCR and the 3.7 times oversubscription of its second block placement this quarter stand as clear testaments to the strong investor confidence in both RCR and RLC's long-term growth prospects. It is also worth noting that RLC now owns 61% of RCR's 140 billion peso market cap, even as RCR holds only about half of RLC's total investment assets. Our investment portfolio remains the key performance driver, led by the sustained growth of our malls, which is our biggest revenue contributor, benefiting from resilient consumer spending despite positive upward trajectory, posting higher occupancy compared to the previous quarter, with our premiumization strategy now clearly paying off with stronger take-off and rents. Our hotels and our logistics and industrial facilities businesses continue to show positive results. Collectively, these businesses form the backbone of our recurring income base, providing stability amid dynamic market conditions. On the development portfolio, our organic residential business remained a standout, maintaining its recovery momentum through the third quarter. We shall provide detailed updates on the development of our existing destination estates in the coming quarters. Meanwhile, our newly launched Robinson Sports, Entertainment, and Recreation Division, introduced just last quarter, is already off to a strong start. in Bridgetown, marking a promising new growth platform for the group. With these positive results, we are confident that our full-year performance will highlight RLC's agile execution and strategic expansion, all aimed at achieving our five-year goal and delivering greater value to our share of voters. And as this is our last earnings call for the year, I would like to sincerely thank each and every one of you for your unwavering support Merry Christmas and happy holidays to everyone.

Thank you everyone for your participation. You make all this connect. Thank you.