Rockwell Land LogoRockwell Land Corporation posted a 40% increase in net income in the first quarter of 2019 at P719 million from P514 million reported in the same period last year.
Driven by the solid performance of its residential development and expansion of its commercial leasing business, the company’s consolidated revenues reached P3.5 billion in the first quarter of the year, 5% higher than the P3.3 billion reported in 1Q18. Total EBITDA [earnings before interest, taxes, depreciation and amortization] grew by 29% to P1.2 billion and registered an EBITDA margin of 34% to total revenues, which is also higher compared to last year’s 28%.
Residential development reflected a sustained performance and generated P2.9 billion, contributing 82% to the total revenues for the period from the good sales performance of the Proscenium and 32 Sanson projects. EBITDA from this segment grew by 26% to P702 million from last year’s P557 million.
Also contributing to the company’s continuous growth is the commercial leasing business which includes retail and office operations. This segment reported revenues of P562 million, 30% higher than the P431 million in 1Q18 and contributed 16% to total revenues. This is driven mainly by higher occupancy of the Power Plant Mall Expansion, Rockwell Business Center (RBC) – Sheridan and Santolan Town Plaza. EBITDA amounted to P465 million, higher by 35% from the same period last year.
Revenues from hotel operations amounted to P64 million and contributed 2% to total revenues.
The company spent P2.6 billion for project and capital expenditures for the first three months of 2019. Bulk of the expenditures pertained to development costs, primarily that of the Proscenium.
In 2018, the residential segment launched the second tower of The Arton by Rockwell in Katipunan and Phase 1 of Aruga Resort and ResidencesMactan in Cebu. The company reported strong reservation sales from these two major projects in 2019.
Last year, it handed over the first two towers of the Proscenium, Kirov and Sakura, which received strong positive feedback from unit buyers. Pioneering the Rockwell horizontal community in Lipa, Batangas, Terreno South was launched to cater to the middle market.
The company’s commercial leasing segment remains robust as it ramps up the occupancy of the Power Plant Mall Expansion, RBC Sheridan and Santolan Town Plaza.