Ladies and gentlemen, good afternoon, and welcome to Robinsons Land Corporation's first 9 months 2025 analyst briefing. Joining us today are our President and CEO, Ms. Mybelle Socorro V. Aragon-Go -Bio, Mr. Faraday D. Go, Executive Vice President and General Manager of the Malls Division, Mr. Kerwin Max S. Tan, our Chief Finance Officer, and the rest of the Investor Relations team. I'll be your host, Mr. Rommel Rodrigo. We will walk you through the company's financial and operational performance for the period. Presenting with us are Mr. Kerwin Max S. Tan and Mr. Ramon Rivero, Chief Strategist and Sustainability Officer. After the presentation, we will open the floor for the Q&A session. Thank you. Before we proceed, I'd like to draw your attention to this disclaimer. The information in this presentation is for informational purposes only. Certain statements may be forward-looking, and actual results may differ materially due to various risks and uncertainties.
We encourage you to review our disclosure and refer to our official filings for more detailed information. Now, let's begin the presentation. Mr. Kerwin, you may start.
Good afternoon. Thank you for joining Robinsons Land Corporation's earnings call. Kindly allow us to take you through our unaudited financial results for the first 9 months of the calendar year 2025. As previously highlighted, we remain committed to our Vision 5-25-50, our roadmap to sustained growth. This vision is anchored on 5 strategic levers designed to deliver PHP 25 billion in net income attributable to parent by RLC's 50th year. These 5 levers, as shown on the slide, form the foundation of our Vision 5-25-50, driving RLC towards sustained profitability and long-term value creation. For the first 9 months, RLC's asset portfolio continues to grow in scale and diversity. It now includes 56 operational lifestyle centers serving as hubs of commerce and community. 134 residential developments are currently active, covering both vertical and horizontal projects.
32 office developments anchored by our strong presence in Metro Manila and key provincial cities. 33 destination estates and mixed-use developments driving land value creation. 27 hotels and resorts across nine brands. 13 work.able centers and 13 industrial facilities supporting the rise of e-commerce and supply chain growth. For the nine-month period ending September 30, 2025, RLC sustained its growth momentum, posting solid results. Consolidated revenues reached PHP 35.61 billion, up 13% year-on-year, propelled by the robust performance of both investment and development portfolios. EBITDA rose 7% to PHP 19.03 billion, while net income attributable to parent climbed 10% to PHP 10.17 billion, excluding a one-time gain recognized in the prior year. On the balance sheet side, total assets expanded 4% versus end 2024 to PHP 273.2 billion.
Total liabilities contracted by 8% to PHP 91.96 billion, largely reflecting the full settlement of maturing obligations, which in turn lowered total debt by 21% to PHP 41.91 billion. Total equity strengthened 12% to PHP 181.24 billion, with parent equity likewise up 12% to PHP 173.86 billion. From a cash flow perspective, RLC generated PHP 19.94 billion in operating cash flow, raised PHP 13.96 billion from two successful block placements, and invested PHP 15.19 billion in capital expenditures to support ongoing developments and future growth. Earnings per share for the nine-month period stood at PHP 2.11 per share. RLC delivered another strong quarter in the third quarter 2025, building on its year-to-date momentum.
Revenues reached PHP 12.58 billion, a 5% increase quarter-on-quarter and 25% higher year-on-year, driven by sustained growth across both investment and development portfolios. EBITDA came in at PHP 6.5 billion, up 4% from the previous quarter and 17% from the same quarter last year. Consequently, net income attributable to parent rose by a remarkable 19% year-on-year growth to PHP 3.3 billion, demonstrating enhanced profitability from core operations. From a financing and investment standpoint, operating cash flow for the third quarter was PHP 6.65 billion. RLC generated PHP 7.75 billion in proceeds from another successful block placement during the quarter, second for the year, and deployed PHP 6.01 billion in capital expenditures, consistent with its long-term growth plans.
Earnings per share for the quarter registered at PHP 0.69 per share. For the first 9 months of 2025, RLC reported consolidated revenues of PHP 35.61 billion, reflecting a 13% increase year-on-year and a notable 25% growth compared to the same quarter last year. This robust top-line performance was driven by the continued momentum across our investment portfolio, particularly malls and offices, alongside the continuing recovery of the residential segment. EBIT grew 7% year-on-year to PHP 14.53 billion and was 21% higher versus the same quarter last year. The EBIT growth lagged revenue expansion due to higher utility expenses and additional depreciation from newly open properties.
Despite the slower EBIT growth relative to revenues, net income attributable to parent rose 10% to PHP 10.17 billion for the first nine-month period, excluding the PHP 730 million gain for the investment reclassification in 2024. Net income for the current quarter ended at PHP 3.3 billion, up 19% versus the same quarter last year. The improvement was supported by a lower effective tax rate following the infusion of additional assets into the REIT company during the quarter. Overall, these results underscore RLC's resilience and ability to sustain profitable growth, backed by its diversified portfolio and effective execution of strategic initiatives. RLC's portfolio remains strategically weighted towards its investment portfolio, which continues to serve as the company's core revenue and earnings driver.
For the first nine months of 2025, the investment portfolio contributed 74% of total consolidated revenues and accounted for 83% and 78% of consolidated EBITDA and EBIT, respectively. This strong performance reflects the steady and recurring income generated by our mall and hotel properties, which comprise the bulk of the investment portfolio. Additionally, the offices and logistics segments provide meaningful contributions, further reinforcing the stability and resilience of this portfolio. Meanwhile, the residential segment sustained its recovery trajectory. Realized revenues for the first nine months were largely driven by the recognition of sales from prior years as more contracts reached the equity threshold. This carried forward the positive momentum for the development portfolio.
Focusing on the third quarter, consolidated revenues reached PHP 12.6 billion, marking a significant 25% year-on-year increase, and net income attributable to the parent stood at PHP 3.3 billion, a 19% increase from the same quarter last year. The residential segment emerged as the quarter's key growth driver, with revenues surging by 247% year-on-year. This sharp increase was fueled by the recognitions of previously booked sales as more contracts reached the equity threshold, translating to larger conversion of standby revenues. Meanwhile, our malls and hotels maintained their upward trajectory. Deliveries sustained year-on-year growth and the office revenues recorded consistently. Overall, the investment portfolio remained the dominant contributor, accounting for 72% of consolidated revenues in the third quarter. This reaffirms the portfolio's role as a resilient and recurring income source, complemented by the strengthening recovery of the residential business.
In September 2025, Robinsons Land successfully completed its fourth block placement of shares in its REIT company, RCR, marking it the largest fundraising transaction for a sponsor of a REIT company in the Philippine Stock Exchange as of the third quarter this year. We sold a total of 1 billion common shares at a transaction price of PHP 7.75 per share, raising proceeds of about PHP 7.75 billion exclusive of taxes and fees. This transaction lowered RLC's ownership in RCR from 65.6% to 60.5%, creating additional headroom for additional asset injections into the REIT. The placement received strong investor demand, being 3.7 times oversubscribed against a base deal size of PHP 4 billion, or roughly $70 million. A clear indication of continued market confidence in RCR's portfolio quality and long-term prospects.
The offer attracted a diversified mix of qualified buyers composed of 80% domestic and 20% foreign investors. Overall, this successful placement not only reinforces investor confidence in RCR as a REIT platform, but also strengthens RLC's balance sheet, providing additional financial flexibility to fund ongoing and future developments. RCR continues to strengthen its contribution to the group's consolidated financial performance. In view of its growing relevance, we would like to share key highlights covering its financial results, portfolio composition, and total gross leasable area. In September 2025, RCR issued 3.83 billion shares to RLC at PHP 8 per share in exchange for nine malls with a total transaction value of PHP 30.67 billion.
This infusion expanded RCR's portfolio to 38 premium assets comprising of 17 offices and 21 malls, with combined gross leasable area of 1.15 million square meters. For the first 9 months of 2025, RCR contributed PHP 7.62 billion in revenues, representing 21% of RLC's consolidated top line. EBITDA rose by 28% year-on-year, reflecting the platform's strong operating efficiency and sustained rental performance. Net income likewise grew 28% to PHP 5.84 billion, accounting for 39% of RLC's consolidated net income attributable to parent. Earnings per share also improved by 6% compared to the same period last year, demonstrating enhanced shareholder returns.
These gains were largely driven by the successful infusion of the 9 malls this year, along with the full-period contributions from properties infused in the third quarter of 2024, further boosting RCR's income-generating capacity. As of September 30, 2025, RCR's portfolio comprises of 38 premium assets with 17 office properties and 21 malls strategically located across 18 unique key locations nationwide. Occupancy across the portfolio remains very high at 96%. Moreover, RCR maintains a healthy WALE, weighted average lease expiry, of 4.07 years. This provides strong income visibility and long-term stability. In terms of tenant mix, 46% of lease space is occupied by BPO companies, another 46% by retail tenants, and 4% each for traditional office users and office GCC, underscoring a well-diversified and demand-resilient portfolio.
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'll now turn you over to Mr. Ramon Rivero for the operational highlights per business unit.
Thank you, Mr. Kerwin Tan. In the first nine months of 2025, I am pleased to share that we continued to build on our growth trajectory, posting total revenues of PHP 14.55 billion, an 11% increase from the previous year. This momentum was anchored by strong rental performance, with rental revenues reaching PHP 10.27 billion, up 10%, driven by a steady 7% same mall rental growth and sustained recovery in foot traffic across our portfolio. Our profitability also strengthened with EBITDA rising to PHP 8.78 billion and EBIT reaching PHP 6.10 billion, reflecting year-on-year increases of 11% and 14% respectively. Operational performance remains solid as we maintain 94% occupancy, higher than the industry average of 92.3%.
Today, Robinsons Malls spans 1.7 million square meters of leasable space, underscoring the continued confidence of our tenants and the resilience of our consumer activity. For RLC Offices, we sustained a stable performance in the first 9 months of 2025, generating PHP 6.24 billion in revenues, up 5% year-on-year. This growth was supported by consistent rental escalations across our expanding portfolio of premium office developments. Our EBITDA climbed to PHP 4.93 billion, while EBIT reached PHP 4.06 billion, both up 3%, underscoring our strong operational efficiency. This reinforces our view that our offices have already bottomed out and are on a positive trajectory toward further growth. Occupancy improved by 100 basis points to 88%, driven by the entry of new tenants.
BPO firms remain our key anchors, accounting for 81% of total occupancy, while our WALE stands at 4.11 years, reinforcing the long-term stability of our recurring income. In the third quarter, we proudly opened new work.able centers in Robinsons Summit Center Three, Robinsons Summit Center Four, and GBF Center 1, adding 770 new seats and bringing our total to over 3,200 seats. This expansion reflects our commitment to flexible workspace solutions and supporting the evolving needs of businesses. For Robinsons Hotels and Resorts, we delivered a 10% increase in revenues, reaching PHP 4.74 billion, driven by strong performance across all brands, particularly our international hotel partnerships and flagship five-star properties, Fili and NUSTAR. Our system-wide occupancy stood at 66%, reflecting sustained travel demand and strong guest volumes.
EBITDA grew 12% to PHP 1.43 billion, while EBIT rose 11% to PHP 764 million, supported by enhanced operating leverage. Notably, around 70% of total revenues came from our international brands and luxury hotels, highlighting our strategic shift towards higher-yield assets. With the opening of NUSTAR last May, RHR's portfolio now includes 27 hotels with over 4,000 room keys, further solidifying our presence in the hospitality sector. In the first nine months of 2025, our logistics and industrial facilities generated PHP 661 million in revenues, up 2% year-on-year. Our EBITDA reached PHP 600 million, while EBIT stood at PHP 438 million, reflecting the continued strength of our operations. We now operate 13 industrial facilities across strategic logistics hubs in Luzon, maintaining a stable occupancy of 80% and healthy tenant demand across the portfolio.
Now for our residential division, we delivered strong results in the first nine months of 2025, posting PHP 4.06 billion in net sales from organic projects, up 30% year-on-year and an additional PHP 2.29 billion from joint ventures. Our realized residential revenues surged in the third quarter, rising 247% year-on-year to PHP 3.11 billion, driven by the recognition of prior year sales that reached the equity threshold. This momentum brought our realized sales to PHP 7.84 billion, representing a 76% increase year-on-year. Profitability also accelerated significantly with EBITDA up 185% to PHP 1.90 billion and EBIT soaring 207% to PHP 1.87 billion.
In addition, equity earnings from joint ventures contributed PHP 912 million during the first nine months. In the first nine months of 2025 for our destination estate segment, we generated PHP 674 million in property development revenues from deferred land sales to our joint ventures. Our EBITDA reached PHP 399 million, while EBIT stood at PHP 395 million, reflecting steady performance from our estate development activities. Last July 17, we at Robinsons Sports, Entertainment, and Recreation, together with Cosmac Athletic Ventures Corporation, held a groundbreaking ceremony for the Helios Pickleball Center in Bridgetowne. The 8-story facility will span over 17,500 square meters of gross floor area and will feature 25 professional grade courts, including a stadium court designed for major events and tournaments.
It will also house 6 floors of sports and recreation facilities such as gyms, sports clinics, and food and beverage outlets, while 2 basement levels will be dedicated to parking. With estimated 1,000 daily foot traffic, we are positioning the Helios Pickleball Center as a potential venue for the Professional Pickleball Association Tour, paving the way for the Philippines to host international tournaments in the future. In the first 3 quarters of 2025, we spent PHP 15.20 billion in capital expenditures in line with our strategic pipeline of developments across malls, hotels, offices, logistics facilities, land banking and residential projects. This disciplined investment approach reflects our commitment to long-term growth and continued portfolio diversification. For the first 9 months of 2025, we successfully paid PHP 13.80 billion in mature debt, a key step in strengthening our balance sheet and ensuring financial flexibility.
Through efficient cash management, we deem it proper to pay our maturing debt to save on interest expense and improve our cash flow. We will borrow only when the need arises. As of September 30, 2025, our total debt stood at PHP 42.10 billion, composed of PHP 24 billion in bonds and PHP 18.10 billion in bank loans, of which PHP 2.40 billion is short-term and PHP 15.70 billion is long-term. Our weighted average loan maturity remains comfortable at 2.1 years, and our effective interest rate stands at 5.8%, reflecting prudent debt management. With 73% of our borrowings under fixed interest rates, we continue to mitigate exposure to interest rate volatility while maintaining a manageable debt maturity profile in the coming years.
For Robinsons Malls, we are on track to expand our total gross usable area from 1.67 million square meters in 2024 to 2.49 million square meters by 2030, representing a 50% cumulative increase over the period. This year, we opened Robinsons Pagadian and will complete uncertain. By 2027, our GLA is expected to grow to 1.97 million square meters, driven by the openings of Tanauan and Antipolo expansion. 2029 will mark a major growth milestone with a 15% growth in GLA through five new malls and two expansions with locations in Parañaque, Sierra Valley Estate, Visayas and Mindanao, and North and South Luzon. By 2030, we aim to reach 2.49 million square meters with the addition of three new malls and three expansions.
Again, these developments underscore our long-term commitment to sustainable growth and a stronger regional presence across the country. For Robinsons Offices, we are set to significantly expand our net leasable area from 793,000 square meters in 2024 to 1.28 million square meters by 2030, a 61% increase over six years. In 2025, the completion of GBF Center 2 and Cybergate Iloilo 3 will boost our footprint by 13%. We will sustain this momentum through 2026 with Cybergate Dumaguete. By 2027, the addition of Ascott Tower and Davao One will bring our NLA to 969,000 square meters. Further growth in 2028 and 2029 will be driven by The Trillium, Bridgetowne One, Marquise, and Davao Two, taking us past the 1.1 million square meter mark.
By 2030, we aim to reach 1.28 million square meters with the completion of Petrucci Tower and Davao Three. This expansion underscores our strategy to strengthen our presence in key business districts and emerging regional centers across the country. On the logistics front, RLX is on track to more than double our gross leasable area from 295,000 square meters in 2024 to 619,000 square meters by 2030, representing a 110% increase over six years. In 2025, we will grow our footprint by 11% with new facilities in Taytay and Calamba 2E. By 2026, we expect a 15% expansion through new developments in Montclair One, Calamba 3A, and Sierra 3 .
Our capacity will further expand to 436,000 sq m in 2027 with new sites in Misamis Oriental, Cebu One, Santa Rosa One, and Bohol One. Over the next three years, we will continue building across Visayas and Mindanao, culminating in 619,000 sq m of total GLA by 2030 through projects in Southern and Central Luzon. This aggressive pipeline underscores our strong commitment to supporting logistics and industrial growth in strategic locations nationwide. Lastly, for our Robinsons Hotels and Resorts, we are pursuing an equally strong growth trajectory, expanding our portfolio from 4,243 rooms in 2024 to 5,681 rooms by 2030, a 34% increase over the period. In 2025, we will open NUSTAR Hotel, followed by Summit Villas Siargao in 2026.
These openings will be complemented in 2027 and 2028 by key additions such as Grand Summit Cebu, Fili Hotel Bridgetowne, and Grand Summit Pangasinan, which will bring our room inventory past 5,200. By 2029, the opening of Grand Summit Bohol will mark a major milestone for Grand Summit brand, an additional 220 room jump in room capacity. Finally, the completion of Grand Summit Davao in 2030 will take us to 5,681 rooms, expanding our total footprint in both established and emerging travel destinations. Through all these developments, we are reinforcing our position as a leading Filipino hospitality brand, creating properties that elevate guest experiences, support local tourism, and deliver long-term value to our stakeholders. This ends our presentation, and we are now open for your questions.
Thank you, Ramon and Mr. Kerwin. Some housekeeping rules for the Q&A. To ask a question, please use the Raise Hand first or the Q&A box. When your name is called upon to ask a question, please state your name before proceeding to the queries. Thank you for your cooperation. The first question goes to Janine in the Raise Hand. Can you unmute, Janine?
Hello, good afternoon.
Yes.
Thank you for hosting the briefing.
You may go.
Yes. This is Janine Gaza again from JPMorgan. My first set question relates to the JV earnings. We noticed that it's a little bit soft. For the last few quarters, can you give or shed more light about the trends that are going on here? How much is unbooked profit so far, unsold inventory, and what are you seeing in terms of cancellation trend as well as sentiment given the recent corruption scandal? That's my first question.
Hi, Janine, this is Mybelle. The sales of our JV projects have been soft in the past quarter. Cancellations have not been alarming. They're still the usual rate. Given the corruption scandals, we do see some form of softening in that particular segment. However, we are going to be starting to turn over the first tower of our joint venture with Hongkong Land by the first half of next year. We believe that sales should pick up again.
Thank you, Ms. Mybelle. Would you be able to share the unbooked profits to date and the value of unsold inventory from the JV earnings?
The standalone revenue is PHP 49.4 billion. How about the JV? Standalone revenues for RLC's share is PHP 9.9 billion.
In terms of profit?
In terms of profit, it's about PHP 1.7 billion.
1.7. Okay, understood. Thank you. My second question relates to the mall revenue growth. We noticed that it's pretty strong at almost mid-teens%. What do you think are you doing differently than peers? Are there any updates on the renovation, extent of expected works, and any disruptions expected from these initiatives?
Well, our revenue growth is coming from. For the existing malls, it's coming from three main sources. One is the increase in the fixed rent. Second one is the increase in occupancy. The third is the increase in tenant sales. Okay, those three are all contributing to the increases in our revenues for the same malls. Then aside from that, we also have our new malls, which are also contributing to all those three factors for our new malls. Your second question was on the expansion.
On the renovations.
Renovations. We have ongoing renovations for several malls like Dumaguete, Bacolod, Manila. These are all strategically done so that to minimize the effect on our existing operations and rental for those malls.
Understood. Thank you. Lastly, would you be able to share the lease-out rate or pre-leasing commitments for GBF Center 1, Center 2, and Iloilo 3, please? Thank you.
Hi, Janine. For GBF one, actually as to date, we're almost near 80% leased. For GBF two, we're looking around 60% pre-lease, while Iloilo three is around 25% leased, pre-leased.
Thank you very much. Those are all my questions.
Thank you, Janine. The next question goes to Renz from CLSA.
Hi, good afternoon. Can you hear me?
Yes, we can hear you.
Hi, good afternoon. This is Renz from CLSA Philippines. First of all, thank you so much for taking my question. I just want to ask about the capital recycling program. I think the company made roughly PHP 14 billion worth of block placements in 2025. Would you be able to share some broad guidance on the amount of private placement proceeds for 2026 onwards? That is to say, is the 14 billion proceeds something that is, you know, sustainable moving forward? Considering that guidance, how will this, you know, shape up your capital allocation decisions, you know, considering the excess cash flows? Will the company prioritize, you know, expanding CapEx, increasing payout, or buybacks? Yeah, that's my first question.
Hey. Hi, Renz. This is Kerwin. Just to answer your question, guidance on how much can we raise this year. Unfortunately, we usually do not provide guidance, 'cause it will depend on the timing and the cues that we subscribe to if ever we do a block placement. In terms of usage of capital, the capital that we get from the placements, of course, we will be flexible on it. It will depend on the need. If there's no need, we will pay down debt. If there's need for CapEx, we will allocate CapEx according to the revenue or plus even the contribution of that particular business unit.
Okay, understood.
Of course, that will provide ample room for us to provide more buybacks and dividends as well.
Okay, understood. Thank you. On the unleased leasing assets, this is still related on capital recycling. May I ask
What the yield on cost is for the malls, offices, hotels, and industrial warehouses?
Renz, we usually do not provide that figure for public consumption.
Okay. Thank you. That's all on my end.
Okay. Thank you, Renz. Next on the raised hand is Mr. Faricy from Regis. Carl?
Good afternoon. Let me just check if you can hear me.
Yes, we can hear you, loud and clear.
Thank you. I have some questions, some of which are related to the items asked by Janine. I'll start off with the mall business. It was mentioned that some of the reasons for an increase in the mall revenue was, let's say, increase in occupancy and expansion of the portfolio. For the third quarter, in particular, it looks like mall revenue was up 7% quarter-on-quarter, and the portfolio size is the same as was occupancy. Is it fair to say that actually tenant sales improved substantially quarter-on-quarter in the third quarter?
If so, I'd be interested in, you know, what you would actually if you can give color on which tenants, types of tenants happen to be strong, or were there particular areas, or malls that were particularly strong?
Carl, if I could add to that, to the answer earlier now.
Mm-hmm.
Aside from what we mentioned earlier, another thing we're doing also is we're trying to maximize the revenue of our current assets also. We do say if we have a tenant that's not performing that well, we try to replace it with a more high-performing tenant. One other thing that we're doing also is we're increasing the F&B mix, which delivers higher rent rate, rent per square meter, as against say another mix that would be a lower rent. Another one is we are converting some of our cinemas into retail spaces that allow us to generate also a higher return for the space.
Good. This is very helpful. Thank you. Let's say, I guess over the past year, or let's say nine months this year versus nine months last year and even 3Q this year, it looks like mall margins have expanded quite substantially. It was mentioned in some previous briefings, you attribute at least part of that, maybe most of that, to reining in utility costs. Is that still the case? Is it mostly because of utility costs?
Yep. Yes. You're saying the margins increase?
Yes.
Yes. Basically, the utility cost is one of our major expenses that affect the margins. Yes. It's still a major cause of when it fluctuates or when we sign up to a new contract with a higher or lower electricity.
Understand. Is there anything else notable that would help drive up the margins?
Nothing in particular.
The biggest-
That's the main, yeah.
Okay.
Yes, system efficiencies that we adopt across the different malls, helping in improving our margins. As to the point of Faraday about the utility cost, power in particular, whenever the power cost increases, we also try to defray or to mitigate the impact by also correspondingly increasing our CUSA that we charge to our tenants so that we're able to maintain our margin spread.
Sorry, it was a little choppy. Could you repeat that? Something about CUSA.
Yeah. When the power rate increases, we experienced that in some months in the past two quarters. We had to increase our CUSA, the CUSA charges that we charge to our tenants, so that we're able to maintain our margin spread.
Got it. Okay. That's very helpful. That's it for the mall business. I'll ask about the residential segment this time. Janine asked a couple of things, and I might have missed it. Did you provide the unsold inventory of JV projects?
Yeah.
The unsold inventory of the JVs is PHP 16 billion.
PHP 16 billion. Great. For the JV projects, one of the things mentioned in previous briefings was that it was easier to sell large units, and you have a lot of small units left. Is there anything you can do about that, or what have you been trying to sell those more quickly?
Well, we are trying to sell the remaining smaller units by payment schemes. We offer more attractive discounting for those particular units. Typically, those unsold units tend to go faster as we approach the turnover of the building. I was also mentioning, when Janine asked about it, one of our joint venture projects, one with Hongkong Land, The Velaris. The first tower is scheduled for turnover by the first half of next year. We believe that should help in moving the remaining inventory.
Got it. Thanks for that. On your standalone projects this time. The reservation sales for standalone projects fell on a quarter-on-quarter basis. Just checking, you still have the same promo, right? A buyer can purchase over 10 years for RFOs.
That's right.
To what would you attribute the decline then, quarter-on-quarter for sales of standalone projects?
It's a combination of our having to rebuild our sales force. We've had to both right size and also to make it a more efficient organization. We are now on a massive hiring mode, trying to rebuild the bottom layer on the property specialists, the real sellers. That's one. We're also doing targeted international marketing deployments. We've also strengthened our international marketing teams, so they're now deployed to UAE, Singapore, North America, where we have always been able to generate strong sales. Domestic sales teams have also been reorganized so that they are focusing on specific projects.
Let me clarify. That's something, let's say, there's a reorganization that happened in 3Q, and that's why sales fell. You expect 4Q and onwards to be better. Do I understand correctly?
Well, that and also, what was driving much of the growth for residential sales in the previous quarter was really the RFO.
Mm-hmm.
The one that you mentioned was the lease to own. We have substantially sold off some of the inventory for RFO. We've also refocused now on reselling, which is a more challenging effort. As we do all of these combined efforts, we believe that the next quarter, we should be able to post higher sales.
Understand. I believe you have or are a lot of buildings due for co-completion, I guess, within the next year. Really you have a lot more RFO coming up, essentially?
Yes.
Okay. I'll ask about residential revenue this time. It, for the third quarter picked up quite substantially, and it was mentioned that there are more contracts that reach the equity threshold. Particularly for the third quarter, it was a very large jump. I'm just curious if should I think of that as a new normal or it was actually a blip, it should actually come down? I think it was mentioned earlier this year that we're supposed to see better growth starting of residential revenue starting next year because of timing. I wanted to check if in fact it was earlier, like it already started as early as the third quarter. We should still see a good amount of growth for 2026 residential revenue.
I think the trend will continue for the fourth quarter and the ensuing quarters. The third quarter recognitions are mainly from the 2021 pre-sales reaching the equity threshold. That coupled with the projects that we will be turning over in the succeeding quarters should contribute to the sustained growth of our realized revenues from the residential projects.
Okay. Thank you very much. Those are all my questions.
Thank you, Carl. Our next question on the raised hand is Rafael Mendoza from Maybank. Rafael, you may ask your question.
Okay. Thank you for the briefing. Again, going back to the residential segment, may I know which locations are your most of your 5,333 inventory currently at? Is it mostly in Metro Manila?
It's mostly in Metro Manila, yes.
I noticed also that EBIT margin for residential was quite, there's been some compression. Is it more a function of the discounting of the RFO units sold, which led to some margin compression in the as of 9 months, 2025?
The EBIT margins are still consistent first quarter to the third quarter. They are at 23%-25%. For the organic projects. For our-
Okay. I would think, it's from the JVs?
Yes.
All right.
To answer your question, it's not from the discounting that we had launched for the focused marketing of our RFOs.
What may be the reason for some compression? I would think it's from the JV projects being sold.
It's the contribution from the JVs.
JVs, yeah. If you can see the JV-
Okay.
Contribution for revenue is lower.
Okay. The JV contribution is lower. Okay.
Yeah.
I understand. For offices as well, I mean, it's not so substantial, the dip in EBIT margin, just 1.9 percentage points, on a nine-month basis. May I know the reason also for the compression?
Yeah, it's a function of higher input costs, such as contracted services and power.
Okay.
added the depreciation of the new buildings.
Okay. From here on out, I would assume.
Also commissions.
Commissions because our wonderful.
Okay.
sales team was able to close a lot of transactions. We were happy.
All right.
to have to pay out commissions.
Yeah.
Got it. From commissions as well. I would assume this level is pretty much gonna be the level for next year.
The level of the margins.
The margins, yes.
It should improve. While we're improving efficiencies, I think it should improve slightly back to what it was before this quarter.
Okay. Yeah, that's it for me. Thank you.
Okay, thanks, Rafi. The next on the raised hand is Jonathan Ogden from Eastspring Investments. John, you may start your question.
Thank you, Ron and team. I've got 2 or 3. The first couple are sort of related. You've got plans to increase your gross floor area in all sectors quite substantially, and there's the 50 years as a company kind of target and so forth. Rival companies also have aggressive plans to raise their gross floor area. So there's a danger there to sort of have this plan, which is all laid out, and you can look at your rivals, they have their plans. The danger is overbuilding and, you know, so that's something you have to be aware of. I just wonder what your thoughts on that. I mean, is there really gonna be enough business for everybody in offices, malls and other areas like your hotels and so on?
Related to that is, do you really think the strategy is correct, which is to emphasize investment properties and just have development properties as a kind of smaller sideline, given you can react to the market much faster, and recycle your capital faster and, you know, go slower or faster depending on what's happening in the market? Whereas your malls, you've kind of lock in for these long periods, and it's a long payback. You know, as I say, there are these rivals, SM, Ayala and so on, who also have their aggressive plans. That's one question. The other one is, if you look at your REIT, it's now exactly double the market cap of the parent company, which is a kind of odd situation.
The yield is just a bit higher on the REIT. You know, the REIT is trading at book value, and Robinsons Land is trading at 0.4 book value. Why is that? I mean, it seems like the market is prepared to pay up for the REIT's assets. They're prepared to pay book, but they're not prepared to pay book for Robinsons Land. That suggests that the assets not in Robinsons, the REIT, are inferior. Maybe you can shed some light on that. Just the other one is if you could give us a bit of color on what's happening in the office segment in general with. We've got AI coming in, if that's affecting anything in either a negative or positive way.
General thoughts on, you know, where we are now with post POGOs and, you know, how BPO demand is going and overall in the market with supply and demand. Thank you very much.
Okay. John, the first question will be answered by.
There were four questions. The first two I will tackle, the third I'll pass on to Kerwin, and the fourth to James. Okay. For the first, the growth that we are laying out in our pipeline, whether there is enough of a market to absorb this, I believe so. For Robinsons Malls, maybe you can start off with that. As you know, the Philippines is a consumption-driven economy. We are geographically fragmented. There's still a lot of tier one, tier two cities in the Philippines that are still unserved or underserved. Robinsons Land is typically the first mover in these areas. We believe that this playbook will still hold and can be a sustainable growth path for Robinsons Malls.
For Robinsons Offices, we likewise believe that we have reached an inflection point. It has bottomed out and, in fact, we have been getting a lot of pre-leasing requirements, expansion requirements as well. We are of course very careful in our expansion plans, striking a balance between doing speculative builds and build-to-suit builds. This for us is a realistic expansion for the Robinsons offices. For logistics, it has been sustainably strong. You can click the slide, James, there. So that's why we have projected 2x growth for the business. For hotels and resorts, we are confident that the 25% improvement or increase in our keys is on the conservative side of the realistic scenario.
We are also banking on the improvement of our tourist arrivals as government efforts towards simplifying the visa requirements and also rolling out the VAT refund system will take place. We're confident that this will be a sustainable pipeline. Now, for the second question, which is...
Was that the one about the 0.4x book versus REIT trading at 1x book?
Maybe Kerwin can take that one.
Okay. I think, RCR now trades about PHP 140 billion of market cap. RLC owns about 60% of 140 billion. The way I look at it is actually on the REIT alone, it's PHP 84 billion already. I think the discount to both is a function of two things, right? Number one, what we can do at our end is that that's why there's a focus by the group to develop more land to monetize whatever land bank that we have so that we can essentially turn it, convert this into our income statement and provide more dividends to our shareholders.
I think the second is the discount I think should be can be answered by both the buy and sell side in this group that how to narrow the discount.
It's an odd situation.
It's an odd situation. Again, that can be solved by both the buy and the sell side.
John, I remember your second question. It was about if our strategy is correct, focusing on the investment side of our business. I believe so because it allows us to have a stable cash flow. It also positions us uniquely to be able to infuse our assets or mature investment assets into the REIT in order to monetize those. The residential market or the developmental business remains to be an opportunistic play for the company. For the offices, James, can you answer?
Hi, John. Just quickly on offices, as per third quarter market reports from several brokers, vacancy is at 20%. We're doing slightly better than market at 12% vacancy. Now in regards to AI, I think AI has always been around, but it's just louder now. We've been hearing from our tenants and our orgs that we talk with that they're really using it as a tool to better their efficiencies, such as training and hiring. What we hear from them is they're just improving productivity with it, using it as a tool. In regards to the key call centers in the U.S., they've remained quite quiet about it because they're hoping it dies down.
The incentives given in the US is much lower than the savings they get here in the Philippines. It's maybe around 20% versus 80% here in the Philippines in regards to labor costs. We're also given a lot of confidence because of our leasing team. We've had around almost close to 200,000 of expiries this year, in which we've renewed and replaced around 94% of that. Also, we're very proud to say that I think this year is the highest amount of new sign-ups that we had, even in the height of POGO, where we've reached 100,000 square meters in new sign-ups, in which 65% were actually IT-BPM industry. We're quite confident on the office sector.
Thank you. Also, I've got one more if I can throw that in there. Just going back to our expansions and what have you. Now in the latest report, we were able to pay down some debt. Now, you know, we got the REIT we can put assets into every now and again. We've got our expansions of our investment properties coming up, and then we've got dividends or buybacks, and then the leverage in the balance sheet. How is that gonna play out in this plan to 2030? Is the balance sheet gonna get more leveraged up or is it gonna go the other way because of sales of the REIT? How do you see the balance sheet evolving over that plan to 2030?
It's a function really of how much money do we raise from the REIT on an annual basis. Given that all things are the same, would be the same, and the balance sheet would more or less be on the same level as currently shown.
In terms of gearing, of course, substantially as part of our 5-25-50 plan, if we reach PHP 25 billion by 2030, that would enable throughout from now to 2030. That will enable us. Our earnings per share will increase, and subsequently our dividend payout will also increase.
Okay. Thank you very much indeed.
Thanks, John. Now we'll go on the Q&A. The first one is from Emmanuel Olimpo. It's answered already. Okay. The second one is from Jose Modesto?
Answered already.
Answered already. Yes. From Marco Maullon. Good afternoon. Thank you for the briefing. May I know if you can provide the revenue contribution, GLA, and occupancy rate for Robinsons Manila and Robinsons Galleria? When do you plan the properties to introduce RCR?
Okay. GLA for both of them combines about 200,000 square meters. Rental income, about 21% rental income, and occupancy is more than 90%.
For interest, it will depend on the market conditions in the future.
A question from Shelleen. How much was RCR's DPS in second quarter 2025 and between 2025?
For the second quarter, DPS was PHP 0.1049 per share. Third quarter, PHP 0.1060 per share. For the first three quarters, we have total dividends per share is PHP 0.3156 per share.
Okay. Thank you. From Cristina Ulang of First Metro. Can you give more context on the high impact strategic partnerships you're cultivating in your five-year plan?
Yeah. We're actively pursuing a number of joint ventures, alliances and also co-investments across our different businesses. You know, it's in various formats. Let's say for the malls, it's really working with high potential tenants. For our logistics business, it's acquiring or co-developing facilities that will allow us to expand our portfolio. For our land acquisition, it's joint ventures with other developers as well as government agencies. Together, this should allow the company to scale our executions, expand our pipelines, and also to accelerate our market entry into market segments where we're not currently playing.
Okay. Question from Juan Paulo Molina. Hi. May we know the potential impact of Trump's Keep Call Centers in America Act of 2023 on RLC's office development, given that the act focuses on voice related services? Do you have an estimate on the percentage BPO tenants that mainly offers this kind of services to American clients only? Thank you.
Hi, Juan. We'll have to get back on exact numbers here. We have to call all our tenants to get a clear number. Just to give you an example, one of our bigger tenants, maybe around one-fourth of its actual space is dedicated to voice, while the others are more on the tech and corporate function. A lot of our tenants service not only the US, but several different countries. It'll be quite a task to break down and give you an exact answer.
Okay. Last question on Q&A is from Francis Paul from BPI. Hello. We would like to ask if you have guidance on Resi launches and take-up for both this year and next year.
For residential launches for the remainder of the year, we don't have anything lined up. We want to be able to sell substantially our current inventory. In the first half of 2026, we're planning to launch horizontal projects in the provinces where we believe market demand is strong. For horizontal projects, our revenue recognition is faster, execution is likewise faster. As to take-up for this year, we are estimating.
Sorry.
We're now at PHP 4 billion. We're estimating that we'll finish the year at PHP 5 billion-PHP 5.5 billion. For next year, given that we have already cleaned up our cancellations substantially for this year, we're looking at a much higher sales take-up. We'll provide more color in the succeeding quarter.
Okay. If there are no further questions, I will now hand you over to Mybelle to give her closing remarks.
Good afternoon again, everybody. As we approach the end of 2025, Robinsons Land continues to post steady progress and solid results across its diversified portfolio. Net income for the quarter grew by impressive 90% compared to the same period last year, supported by resilient recurring income streams, a strong recovery in our residential business, and strategic capital recycling through our REIT platform, a key driver of our 5-25-50 objective. The infusion of additional mall assets into RCR and the 3.7x oversubscription of its second block placement this quarter stand as clear testaments to the strong investor confidence in both RCR and RLC's long-term growth prospects. It is also worth noting that RLC now owns 61% of RCR's PHP 140 billion market cap, even as RCR holds only about half of RLC's total investment assets.
Our investment portfolio remains the key performance driver led by the sustained growth of our malls, which is our biggest revenue contributor, benefiting from resilient consumer spending despite the recent typhoon disruptions. The offices segment also continued its positive upward trajectory, posting higher occupancy compared to the previous quarter, with our premiumization strategy now clearly paying off with stronger take-up and rents. Our hotels and our logistics and industrial facilities businesses continued to show positive results. Collectively, these businesses form the backbone of our recurring income base, providing stability amid dynamic market conditions. On the development portfolio, our organic residential business remained a standout, maintaining its recovery momentum through the third quarter. We should provide detailed updates on the development of our existing destination estates in the coming quarters.
Meanwhile, our newly launched Robinsons Sports, Entertainment, and Recreation division, introduced just last quarter, is already off to a strong start with the groundbreaking of its flagship project in Bridgetowne, marking a promising new growth platform for the group. With these positive results, we are confident that our full-year performance will highlight RLC's agile execution and strategic expansion, all aimed at achieving our five-year goal and delivering greater value to our shareholders. As this is our last earnings call for the year, I would like to sincerely thank each and every one of you for your unwavering support. Merry Christmas and happy holidays to everyone.
Thank you everyone for your participation. You may all disconnect.