Robinsons Land Unsp/Adr

Ladies and gentlemen, good afternoon and thank you for joining us in our first quarter annualist briefing. Joining us today are President and CEO, Ms. Michael Orobri Aragon-Gobio, Secretary Vice President and General Manager for Malls and Destination Estate, Divisions, Mr. Faraday Ndigo, our Chief Financial Officer, Mr. Kirby Tang, and our Chief Strategist, Ramon Rivero and the rest of the IRT. Presenting us today is Mr. Kermit Tan and also Mr. Ramon Rivero. After the presentation, we will open the floor for a Q&A session. Before we proceed, I'd like to draw your attention to this disclaimer for a couple of seconds. We encourage you to review our discussion and refer to our official findings for more detailed information. Now, let's start the presentation. Mr. Currie, you may begin.

Robinson's Land remains committed to strengthening its diversified portfolio and broadening its nationwide footprint through developments that support sustainable growth and long-term value to Asia. Robin's plan delivered solid financial results and sustained its growth momentum in the first quarter of 2026. RLC's consolidated revenues rose 11% year-on-year to 12.28 billion pesos, supported by solid contributions from both the investment and development portfolios. Operating profitability remained healthy, with EBITDA increasing by 5% to 6.59 billion pesos. Growth was tempered by higher utility expenses due to a lower comparative cost base in the first quarter of 2025. The subsequent power rate adjustments were implemented in the second quarter of 2025. Core earnings momentum remained strong as net income expanded by 9% to 4.4 billion pesos. The faster growth versus even net was mainly driven by lower financing costs due to repayment of debt, and a reduced effective tax rate, following the additional batch of asset infusions into RCR in the third quarter of 2025. Meanwhile, net income attribute above the parent increased 2% to 3.54 billion pesos. The comparatively slower growth was primarily due to the higher minority ownership in RCR, which increased to 44.33% from 36.13%. following the block placement of RCR shares made in January 2026. Recall that last year's initial block placement was conducted in April of 2025. Turning to our balance sheet, total assets increased by 4% to P286 billion as of the end of the first quarter, meaning driven by higher cash balances from strong operating cash flows and proceeds from our block placement of RCR shares. Total liabilities rose modestly by 1% to P91.39 billion, primarily due to the time of payments related to ongoing projects and operating expenditures. Meanwhile, total equity strengthened by 6% to P194.99 billion, while parent equity increased by 5% to P184.91 billion, largely driven by the additional equity reserves recognized from the recent block placement. total interest-bearing debt remained steady at 39.55 billion pesos. Coupled with a higher cash position, this resulted in a further improvement in net debt equity to 9.64%, reinforcing the strength of RLC's balance sheet and conservative leverage profile. From a cash flow perspective, cash and cash equivalents increased to 21.72 billion pesos, mainly driven by its robust operating cash flow and complemented by a successful 7 billion peso block placement in January 2026. During the quarter, RLC deployed 3.25 billion pesos in capital expenditures to support ongoing developments and expansion initiatives, resulting in positive free cash flow of 4.47 billion pesos. Morales maintained its low debt level from year end 2025, with total debt at 39.7 billion pesos. The lower debt base was achieved through debt repayments made last year, which were supported by strong positive operating cash flows and additional liquidity generated from knock placement proceeds. Around 72% of the borrowings are fixed rate, providing stability against interest rate movements, while 28% are floating. The debt portfolio consists of 24 billion pesos in bonds and 15.7 billion pesos in long-term bank loans, with an effective interest rate of 5.7%, and weighted average maturity of 1.7 years. Overall, RLC continues to maintain a healthy and manageable debt profile, supported by strong cash generation and disciplined capital management. RLC delivered another strong quarter in the first quarter of 2026, building on its full-year momentum. Consolidated revenues reached 12.28 billion pesos, representing an 11% year-on-year increase driven by the strong performance of both our investment and development portfolios. Event lab grew by 5% to 6.59 billion pesos, with growth moderating relative to revenues mainly due to higher utility costs, following power rate adjustments implemented subsequent to the prior period, which resulted in a lower utility cost increase in the first quarter of 2025. E-mits grew by 4%, with growth tempered by higher depreciation charges arising from newly operating assets. These are namely Pagalian Mall, GDF Tower 2, and Iladilo Tower 3 offices, New Star Hotel Cebu, and the newly completed warehouses in Talamba and San Fernando. Meanwhile, net income increased by 9% to 4.4 billion pesos, unfacing even the growth mainly due to lower interest expense and a lower effective income tax rate following the infusion of additional assets into RCR during the third quarter of 2025. Net income attributes of the parent grew by 2% to 3.54 billion pesos. The more modest increase was mainly due to higher minority interest in RCR according to 4.33% this year versus 36.13% last year, following the successful 7 billion pesos worth of block placements of our RCR stake in January of 2026. Compared to the previous quarter, revenues declined due to the seasonally stronger holiday-driven performance in the fourth quarter. Despite the softer top nine, event-line even only decreased marginally, reflecting the efficiency of the company's operating performance. Meanwhile, net income attributable to parents increased by 7% quarter-on-quarter, mainly driven by lower interest expense and lower effective income tax rates following the previously mentioned asset infusion to RCR. RLC's portfolio remains strategically uncomfort on its investment portfolio, which continues to be the company's primary driver of revenues and earnings. For the first quarter, The investment portfolio contributed 75% of consolidated revenues and accounted for 85% and 81% of consolidated EBITDA and EBIT respectively. The mall's division remained the largest contributor within the investment portfolio. Mall revenues increased mainly due to rental escalations across existing properties, resulting in the same mall rental growth of 4% year-on-year, alongside contributions from newly opened pavilion malls, and higher amusement revenues, even if the growth was moderated by higher power rates, while even growth was further tempered by additional depreciation of the new one. Meanwhile, the development portfolio accounted for the remaining 25% of consolidated revenue and contributed 15% and 19% of consolidated EBITDA and EBIT, respectively driven by the group's organic residential product. Residential revenues increased mainly as more contracts from prior years reached the existing threshold, coupled with higher percentage of completion recognition from ongoing projects. An EBIT grew at a faster pace than revenues due to lower marketing and advertising expenses, sustaining a positive momentum for the development portfolio. A more detailed discussion of each business unit's performance will be presented in the succeeding slides. In January 2026, Robinson's Land successfully completed its fifth block placement of shares in RCR, selling approximately 946 million RCR common shares through an overnight accelerated block placement at 7.40 centavos per share, generating gross proceeds of 7 billion pesos. The transaction was well received by the market and increased RCR's public flow to 44.18%. further improving trading liquidity and broadening the investor base. While proceeds from the placement were used to strengthen RSS's liquidity position and support debt reduction. Overall, the transaction demonstrates RSS's continued ability to unlock value from its investment portfolio through disciplined tactical recycling initiatives. RCR was recently included in the recent Philippine Stock Exchange Index, or PSEI, becoming one of its newest constituent effects in February of 2026. In addition to the PSEI, RCI is also included in several major indices, such as the PSE Dividend Yield Index, MSEI, FTSE, Russell, which enables its visibility among global institutional investors. Overall, this milestone reflects the convenient growth, liquidity, and market relevance of RCR. further strengthened its position in the Philippine capital markets. RCR continues to play an increasingly significant role in RLC's consolidated financial performance, supported by its expanding portfolio and growing recurring income base. During the quarter, RCR generated 3.32 billion pesos in revenues, accounting for 27% of RLC's consolidated revenues. It did then increase by 40% year-on-year, to 2.75 billion pesos, while net income rose by 34% to 2.37 billion pesos, mainly driven by the infusion of nine malls heated last year, which further expanded RCR's income-generating capacity. Net of minority interest, RCR contributed approximately 51% of RLC's net income attributable to Peren, highlighting its growing importance within the group's earnings mix. The dividends per share increased by 6% year-on-year, reflecting RCR's continued ability to deliver stable and growing shareholder returns. As of the first quarter of 2026, RCR's portfolio comprises of 38 premium assets with 17 office properties and 21 malls, strategically located across 25 unique locations nationwide with a gross usable area of 1.15 million square meters. Portfolio occupancy remains strong at 96%, while weighted average lease expiry stands at 4.03 years. In terms of tenant mix, retail tenants account for 47%, EPOs at 46%, with a balance coming from traditional offices and CPs, reflecting a well-diversified and resilient tenant base. Overall, 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 now turn you over to Mr. Ramon Rivero for the operational highlights for our business unit.

Thank you, Mr. Kerwin Tan, and good afternoon to everyone in the call. Moving forward to our business unit's performance, for the first quarter of 2026, our mall's business delivered strong results. Revenues increased by 7% to 5.06 billion pesos, primarily driven by 5% growth in rental revenues to 3.73 billion pesos, with same mall rental revenue growth at 4%, coupled with sustained improvement in foot traffic across our portfolio. Profitability also strengthened. EBITDA rose to 3.08 billion pesos, while EBIT reached 2.17 billion pesos, representing 3% and 2% growth respectively. Operationally, we maintained a 94% occupancy rate ahead of the industry average of 92.3%. Today, Robinson Smalls spans approximately 1.7 million square meters of feasible space, reflecting continued tenant confidence and the resilience of consumer activity across our markets. Beyond retail, our office portfolio continues to provide another strong pillar of recurring income, supported by stable demand from the BPO sector and our focus on well-located office developments. Our Robinson's offices segment also delivered solid performance. First quarter revenues increased by 8% to 2.17 billion pesos, primarily from the contributions of newly operational offices in Bridgetown, GDF Tower 2, and Iloilo Tower 3, as well as the completion of additional work table centers in GDF Tower 1 and Robinson Summit Center. However, growth in EBITDA and EBIT was partially tempered by higher repairs and maintenance and increased power rates, with EBITDA at 1.71 billion pesos and EBIT at 1.40 billion pesos, both growing 6%. Occupancy in our same office spaces improved by 100 basis points to 86%, continuing to outperform industry levels, supported by new tenant take-ups. The VTO sector remains our anchor, accounting for 82% of total occupancy, while our weighted average lease expiring of 4.13 years continues to provide strong visibility and stability for our recurring income. Complementing our commercial portfolio, our hospitality segment continues to benefit from the recovery in travel and tourism, with improving occupancy and stronger guest volumes across our brands. For Robinson's Hotels and Resorts, our first quarter performance was particularly strong, with revenues reaching 1.72 billion pesos, up 14% year-on-year. Growth was mainly driven by improved operations of Philly Urban Resort and the Westin Manila, alongside contributions from the newly opened NuStar Hotel Cebu. Operationally, system-wide remit flagged year-on-year at 66%, reflecting steady demand and stable tourist arrivals for the first quarter of the year. Profitability also improved. with EBITDA rising 10% to P537 million and EBITDA increasing 6% to P294 million, supported by better operating leverage as demand continued to recover. And importantly, around 74% of total revenues now come from our international brands, luxury hotels, and our own brand Philly and Nuscar. reflecting our strategic shift towards higher-yield hospitality assets. With our investment portfolio, we continue to strengthen our logistics and industrial platform, which played an increasingly important role in supporting the country's growing supply chain and e-commerce ecosystem. For our logistics and industrial facilities, we continue to see steady progress. For the first quarter, revenues reached P269 million, reflecting sustained demand for well-located logistics assets. Operationally, the segment delivered strong results with EBIT at P250 million and EBIT at P194 million, underscoring the efficiency and resilience of our logistics platform. As of year end, we operate 15 industrial facilities located across key strategic logistics hubs, maintaining an 84% occupancy rate, which reflects the continued expansion of logistics and supply chain activity in the country. Moving on toward development portfolio, for the first quarter of 2026, we generated 3.74 billion pesos in net sales from both organic and joint venture projects, reflecting a 319% year-on-year increase. Realized residential revenues strengthened in the first quarter, increasing 39% year-on-year to 2.72 billion pesos, driven by revenue recognition from prior year sales that reached the equity threshold, coupled with a higher percentage of completion recognition from ongoing projects. Profitability also substantially improved due to lower marketing and advertising expenses. EBIT rose 55% to 754 million pesos, while EBIT increased 58% to 715 million pesos, reflecting stronger operating leverage as revenue recognition accelerated. Additionally, equity earnings from joint ventures contributed 181 million pesos, reinforcing the diversification of our earning space. For destination estates, we generated 161 million pesos in property development revenues, mainly from deferred land sales to our joint ventures, reflecting the steady monetization of our development pipeline. EVIT reached 82 million pesos, while EVIT stood at 72 million pesos, demonstrating consistent performance from our estate development activities. During the first quarter, we spent 3.25 billion pesos in capital expenditures align with our strategic development pipeline across malls, hotels, offices, logistics facilities, land banking, and residential projects. This disciplined investment approach supports long-term growth and portfolio diversification. For future plans, We are on track to significantly expand our portfolio through 2030 under our Vision 52550, with malls reaching 2.4 million gross feasible area, offices growing by over 50% to 1.28 million GLA, and logistics more than doubling to 600,000 gross feasible area. Our hotel portfolio will likewise grow, with room capacity increasing by 35% to 5,681 keys. Per calendar year 2025, Robinsons Land is declaring its highest dividend per share at 1 peso per share. reflecting the company's continued strong earnings performance and commitment to shareholder returns. This brings our dividend payout ratio to 36%, likewise the highest on record and well above our stated policy of maintaining at least 20% of recurring net income. This milestone reflects the company's strong earnings performance disciplined capital management, and commitment to delivering consistent shareholder returns. As we conclude, we recognize that we continue to operate in an environment shaped by global uncertainties, including geopolitical tensions and energy-related pressures. However, this is not unfamiliar territory for us. We have navigated multiple cycles in the past and resilience remains deeply embedded in our organization. We move forward with discipline and focus, confident in our ability to navigate volatility while continuing to deliver sustainable long-term value. This ends our presentation and we are now open for your questions. Thank you.