RLC maintains highest rating for ₱30 billion bonds

Robinsons Land Corporation’s (RLC) retained the highest PRS Aaa rating, with a Stable Outlook, from Philippine Ratings Services Corporation (PhilRatings) for its outstanding bonds amounting to ₱30.4 billion.

Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong. 

A Stable Outlook, on the other hand, indicates that the rating is likely to be maintained or to remain unchanged in the next 12 months.

PhilRatings said the rating and outlook were assigned given RLC’s diversified portfolio alongside an established brand name, steady growth in the company’s margins and returns, and RLC’s ambitious expansion plans are seen to continue, overseen by its experienced management.

Also taken into consideration is the company’s healthy liquidity, supported by steady cash flows from operations, and its conservative capital structure.

Going forward, PhilRatings said RLC plans to capitalize on the continued growth of the domestic economy through sustained expansion of its portfolio. 

RLC remains optimistic about its overall growth prospects, banking on the strength and resiliency of its different business segments.

In 2023, RLC registered an increase in its bottom line for the third straight year, with its net income amounting to ₱13.4 billion (up by 20.1 percent from 2022). 

Margins also continued to improve, supported by higher revenues from all but one business segment and proper cost control. Additionally, the Company posted record-high EBITDA and EBIT margins. 

RLC carried over its growth momentum to the first nine months of 2024, during which it recorded higher revenues (up four percent YoY), operating income (7.2 percent higher), and net income (17.6 percent growth).

These were driven by the continued solid performance of its investment portfolio (malls, offices, hotels, and warehouse segments). Margins and returns for the first nine months of 2024 similarly improved.

Higher earnings translated to a larger net cash flow from operating activities of ₱16.0 billion in 2023, up by 35.3 percent from 2022. In the first nine months of 2024, operating cash flows amounted to ₱13.6 billion, still supported by solid profitability.