Rockwell Land profit jumps 11%
EARNINGS of Rockwell Land Corp. grew 11% in 2016, as robust sales of condominium units offset a dip in revenues from its commercial development segment.
In a regulatory filing, the Lopez-led property developer said it booked P1.82 billion in net income last year, from 2015’s P1.64 billion.
Total revenues jumped by 42% to P12.71 billion last year from P8.92 billion the year prior.
Residential sales soared 69% to P10.8 billion last year, largely due to the substantial completion of the Proscenium projects at Rockwell Center, Makati; and 32 Sanson in Cebu. This segment, which involves the development, sales and property management of residential units under the Rockwell and Primaries brand, accounted for 87% of total revenues.
Rockwell Land said reservation sales, driven by Proscenium, The Vantage and newly launched Edades Suites, went up 45% to P11.8 billion.
On the other hand, commercial developments, which contributed 10% of total revenues, saw a 38% decline to P1.3 billion in 2016. Rockwell Land noted a 15% increase in leasing income failed to offset the decline in the sale of office units.
Hotel operations, which account for 3% of total revenues, reported a 33% increase in revenues to P346.7 million. Rockwell Land operates the Aruga serviced apartments at the Edades Tower in Makati City, and Aruga at The Grove in Pasig City.
Cost of real estate surged 73% to P7.8 billion in 2016, as Proscenium and 32 Sanson were substantially completed.
Rockwell Land spent P12.6 billion for project and capital expenditures in 2016, mainly for development and land acquisition costs.
Incorporated in 1975 initially as the First Philippine Realty and Development Corp., Rockwell Land has business interests in property development for the high-end and upper mid-markets in Metro Manila and Cebu.
Lopez Holdings Corp. holds investments in Rockwell through First Philippine Holdings Corp.
Shares in Rockwell slipped 2.84% or five centavos to P1.71 each on Thursday. -- Arra B. Francia