2020 Annual Report (Pdf)
Total Page:16
File Type:pdf, Size:1020Kb
ANNUAL REPORT 2020 Contents COMPANY PROFILE 3 Financial Highlights 4 Project Location Map 5 Directory 6 MESSAGE TO SHAREHOLDERS OUR BUSINESS UNITS 11 Commercial Centers Division 13 Residential Division 16 Office Buildings Division 18 Hotels & Resorts Division 20 Industrial & Integrated Developments Division 21 Chengdu Ban Bian Jie CORPORATE SOCIAL RESPONSIBILITY 23 RLove Program 25 Environment & Sustainability 27 Robinsons Mall Gift of Change CORPORATE GOVERNANCE 30 Our Commitment to Good Governance 33 The Board of Directors - Responsibilities and Composition 37 Enterprise Risk Management, Accountability, and Audit 40 Other Matters 42 BOARD OF DIRECTORS 43 AUDITED FINANCIAL STATEMENTS Financial Highlights For the Years ended December 31 2014 2015 2016 2017 2018 2019 2020 (in million pesos) Gross Revenues 17,460.22 20,306.91 22,809.05 22,516.82 29,545.31 30,583.84 25,404.83 Net Income 4,773.87 5,952.94 5,755.32 5,884.44 8,223.96 8,692.61 5,259.36 Total Assets 88,421.50 111,711.51 124,432.16 148,126.55 174,158.16 189,651.21 215,200.73 Stockholders' Equity 53,968.36 58,444.74 62,855.31 67,372.62 93,919.72 100,077.67 102,718.03 GROSS REVENUES TOTAL ASSETS (in billion pesos) (in billion pesos) 40 250 215.20 29.56 30.58 189.65 25.40 200 174.16 30 22.81 22.52 148.13 150 124.43 20 100 10 50 - - 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 NET INCOME STOCKHOLDERS' EQUITY (in billion pesos) (in billion pesos) 8.69 10 8.22 150 8 102.72 100.08 5.76 5.88 100 93.92 6 5.26 67.37 62.86 4 50 2 - - 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Robinsons Land Corporation | 2020 Annual Report 3 Project Location Map Luzon 15 PROVINCES ILOCOS NORTE NATIONAL CAPITAL • Lifestyle Center REGION • Office Development • Lifestyle Center • Residential Projects • Office Development • Hotels PANGASINAN • Residential Projects • Lifestyle Center • Industrial Facilities • Co-Working Spaces CAGAYAN • Destination Estate • Lifestyle Center BATANGAS ISABELA • Lifestyle Center • Lifestyle Center • Residential Projects NUEVA ECIJA CAVITE • Commercial Center • Lifestyle Center • Hotel TARLAC • Residential Projects • Commercial Center LAGUNA • Office Development • Lifestyle Center • Residential Project • Industrial Facilities PAMPANGA RIZAL • Lifestyle Center • Lifestyle Center • Residential Projects • Industrial Facilities • Destination Estate • Residential Projects • Destination Estate BULACAN • Commercial Center PALAWAN • Residential Project • Lifestyle Center • Hotel • Residential Project CAMARINES SUR • Lifestyle Center • Office Development Visayas 7 PROVINCES NEGROS OCCIDENTAL LEYTE • Lifestyle Center • Lifestyle Center • Hotel • Hotels • Residential Project NEGROS ORIENTAL CAPIZ • Lifestyle Center • Lifestyle Center • Hotel ILOILO CEBU • Lifestyle Center • Lifestyle Center • Hotel • Hotels • Office Development ANTIQUE • Residential Projects • Commercial Center Mindanao 7 PROVINCES AGUSAN DEL NORTE MISAMIS ORIENTAL • Lifestyle Center • Commercial Center • Hotel • Residential Projects LANAO DEL NORTE DAVAO DEL NORTE • Lifestyle Center • Lifestyle Center • Hotel SOUTH COTABATO BUKIDNON • Commercial Center • Lifestyle Center • Residential Projects DAVAO DEL SUR • Commercial Center • Office Development • Hotel • Residential Projects Robinsons Land Corporation | 2020 Annual Report 4 Directory Address Business Inquiries Level 2, Galleria Corporate Center, EDSA cor. Ortigas Avenue, Quezon City Robinsons Malls +632 8397 1888 loc. 31261 Telephone No. +632 8395 2177 +632 8397 1888 Robinsons Offices +632 8397 0171 Corporate Website www.robinsonsland.com Robinsons Residences +632 8397 0101 loc. 35843 +632 8397 0101 loc. 32773 Auditors Sycip Gorres Velayo & Co. Robinsons Homes +632 8397 0358 Certified Public Accountants SGV Building, 6760 Ayala Avenue, Makati City Stock Transfer Agent Rizal Commercial Banking Corporation Hotel Reservations Trust and Investment Group G/F Grepalife Bldg. Crowne Plaza Manila Galleria +632 8633 7222 221 Senator Gil Puyat Ave., Makati City Holiday Inn Manila Galleria +632 8633 7111 Investor Relations Rommel Rodrigo Dusit Thani Mactan Cebu +63 32 888 1388 43/F Robinsons Equitable Tower ADB Avenue corner Poveda Road Go Hotels and +63 998 888 7788 Ortigas Center, Pasig City Summit Hotels & Resorts +63 917 888 7788 +632 8397 1888 loc. 31536 +632 8397 0111 [email protected] Robinsons Land Corporation | 2020 Annual Report 5 Message to Shareholders Lance Y. Gokongwei Frederick D. Go Chairman President & CEO On the back of a strong start in 2020, Robinsons Land Corporation (RLC) was poised for a record year. Like many companies, however, the business was confronted with unprecedented challenges in the face of compounding crises. The onslaught of natural calamities and the COVID- 19 pandemic disrupted supply chains, business operations, and workplace structures, forcing a shift in priorities and short-term strategies. Nevertheless, RLC and its dedicated employees continued to serve its customers, business partners, and stakeholders. At the height of community quarantines, our malls and offices remained open to support establishments offering essential services, such as groceries, pharmacies, banks, and IT- Business Process Management (IT-BPM) firms; while our residential teams worked relentlessly to ensure safety and security across our condominium properties. Likewise, our hotels served as temporary homes for returning Overseas Filipino Workers (OFWs) and guests under quarantine. The Company also institutionalized heightened cleanliness standards and invested in contactless technologies to minimize health and safety risks. While the Company ensured business continuity, employee welfare and protection remained of utmost priority. Amid trying times, we provided salary continuance, financial support for frontliners, nutrition supplies, temporary accommodations, as well as free shuttle services. In addition, RLC adopted remote work arrangements and supported a digital workplace to safeguard the wellbeing of all operational stakeholders. For the same reason, the annual shareholders’ meeting was conducted in a virtual format for the first time. “While the Company ensured business continuity, employee welfare and protection remained of utmost priority. Amid trying times, we provided salary continuance, financial support for frontliners, nutrition supplies, temporary accommodations, as well as free shuttle services. In addition, RLC adopted remote work arrangements and supported a digital workplace to safeguard the wellbeing of all operational stakeholders.” In 2020, RLC demonstrated the resilience of its diversified portfolio as it generated positive cash flows across its business units. The Company ended the year with EBITDA of Php13.68 billion and Net Income of Php5.26 billion, which declined by 21% and 39%, respectively versus same period last year. Consolidated revenues registered at Php25.40 billion, down by 17%. The Company’s investment portfolio, composed of the malls, offices, hotels, and industrial facilities, contributed 51% of total revenues, with the 49% balance coming from the sale of residential units and land parcels that form part of our development portfolio. RLC maintained a strong financial position with Total Assets at Php215.20 billion and Shareholders’ Equity at Php102.72 billion. Its liquidity position remained intact following a Php13.19-billion bond offering in July, which obtained the highest credit rating of “PRS Aaa with a stable outlook” and was well-received by the debt capital markets. With a net gearing ratio of only 39%, RLC possesses financial flexibility to navigate short-term headwinds caused by the pandemic. Furthermore, in line with our firm commitment to return value to our shareholders, we distributed Php2.60 billion or Php0.50/share in cash dividends in 2020. Robinsons Land Corporation | 2020 Annual Report 6 The Commercial Centers Division accounted for 23% of company revenues to close at Php5.96 billion in 2020, 55% lower versus previous year, while EBITDA dropped 53% to Php4.11 billion. Rental concessions were provided to support the recovery of partner tenants affected by temporary mall closures and quarantine restrictions. In response to public health and safety concerns, several innovative services were rolled out to facilitate worry-free shopping experiences. Robinsons Malls’ Pickup Station, RDelivery, and RPersonal Shopper offer safe and easy ways for customers to shop, while enabling partner tenants to expand consumer reach. In the second half of 2020, mall revenues started to rebound on the back of sustained improvements in operational gross leasable area, number of operational tenants and foot traffic. These performance indicators are expected to gradually rise over time as quarantine restrictions continue to ease. Robinsons Malls closed 2020 with a system-wide occupancy rate of 93% on a total gross floor area of approximately 2.93 million square meters (sqm) and total mall leasable space of 1.52 million sqm, which declined by 3% following the deconsolidation of Altus Property Ventures, Inc. (APVI) from RLC. APVI made its debut in the local stock market in June by virtue of listing by way of introduction. Leveraging on its portfolio of high-quality assets, the Office Buildings Division finished the year strong and contributed 23% to consolidated revenues. The success of our leasing activities for new developments, namely Giga Tower, Cybergate Magnolia, Robinsons Luisita Office 2 and Cybergate Delta 2, and rental escalations in existing office buildings grew revenues by 10% to