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- Overview
- Investor Relations
- Rockwell Land Total Outstanding Shares
- Exchange Where Listed
- Rockwell Land’s Shareholding Structure
- Financial and Operating Highlights
- Company Disclosures
- General Information Sheet
- Annual Stockholders’ Meeting and Reports
- Corporate Governance
- Corporate Social Responsibility
- FAQs
FINANCIAL AND OPERATING HIGHLIGHTS
Management’s Discussion and Analysis of Financial Condition and Results of Operation
RESULTS OF OPERATIONS:
For the nine months ended 30 September 2023 and 2022
Rockwell Land Corporation (“the Group”) registered Php13,325 million in consolidated revenues, higher by 6% from last year’s Php12,471 million. Residential development accounted for 78% of the total revenues in 2023, higher than last year’s 72%.
Total EBITDA reached Php5,288 million, higher than last year’s Php4,261 million driven by higher EBITDA from residential development. Overall EBITDA margin registered at 40% of total revenues, higher than last year’s 34%. The total revenues used as basis for the EBITDA margin excludes gross revenues from the joint venture with Meralco, T.G.N Realty Corporation and International Pharmaceuticals, Inc. as these are reported separately under “Share in Net Losses (Income) in JV”. Share in net income in the joint venture contributes 6% to the Company’s total EBITDA.
Residential development and commercial development contributed 62% and 38% to the total EBITDA, respectively.
Consolidated net income after tax registered at Php2,739 million, higher than last year’s Php2,194 million. NIAT to Parent for the nine months is Php2,523 million, 26% higher from same period last year of Php2,000 million.
Business Segments
Residential Development generated Php10,427 million, contributing 78% of the total revenues for the period. Bulk of the revenues came from the sale of real estate, including accretion from interest income.
EBITDA from this segment amounted to Php3,264 million, 66% higher than the same period last year at Php1,970 million mainly attributable to projects with higher construction progress.
Commercial Development revenues amounted to Php2,898 million, 17% lower than 2022’s Php3,495 million primarily due to prior year recognition of One Proscenium unit sale. This segment contributed 22% to total revenues excluding the share in the joint venture with Meralco for the Rockwell Business Center in Ortigas, Pasig City.
Retail Operations which include retail leasing, interest income and other mall revenues generated revenues of Php1,767 million, 30% higher than last year’s Php1,362 million due to improved average rental and occupancy rate. Office Operations generated Php958 million which is equivalent to 7% of the total revenues. Office operations include office leasing, sale of office units and other office revenues.
Hotel Operations, contributed 1% of the total revenues. Its revenues amounted to Php173 million and costs and expenses at Php114 million. Resulting EBITDA is at Php59 million.
The segment’s EBITDA amounted to Php2,024 million, 12% lower from the same period last year due to prior year recognition from One Proscenium unit sale. This includes the share in net income in the joint venture amounting to Php304 million, contributing 15% to the segment’s EBITDA.
Costs and Expenses
Cost of real estate and selling amounted to Php7,322 million. The cost of real estate and selling to total revenue ratio is at 55%, lower than last year’s 62% due to higher lease income and higher interest income accretion from new launches.
General and administrative expenses (G&A) amounted to Php1,634 million, 17% higher than last year mainly due to higher hotel and cinema direct costs from improved operations, higher manpower related costs and higher taxes and fees.
Interest Expense amounted to Php1,155 million, higher by 28% than last year’s Php902 million. The increase was mainly due to higher average loan balance and interest rate.
Share in Net Income (Losses) in JV and associates realized share in net income of JV and associate amounted to Php320 million, higher than last year’s Php297 million. The 8% growth from last year is mainly due to RBC-Ortigas higher rental rate. At its 70% share, the Company generated total revenues of Php443 million and share in net income of Php304 million. The share in net income is reported net of taxes and represents the Company’s share in the operations generated by RBC.
Project and capital expenditures
The Group spent a total of Php11.5 billion (gross of VAT) for project and capital expenditures for the nine months of 2023. Bulk of the expenditures pertained to land acquisitions and development costs, mainly that of The Arton, Mactan and Nara Residences. These were funded mainly by internally generated funds.
Financial Condition
The Group’s total assets as of September 30, 2023 amounted to Php74.1 billion, slightly higher from 2022’s year-end amount of Php69.7 billion. On the other hand, total liabilities amounted to Php42.2 billion, higher from 2022’s year-end amount of Php42.1 billion. The increase in total assets were mainly from cash and cash equivalents and other current assets.
Current ratio as of September 30, 2023 increased to 3.73x from 3.16x as of end 2022. Net debt to equity ratio is at 0.67x as of September 30, 2023, lower compared to 2022’s year-end ratio of 0.78x.
Causes for any material changes (+/- 5% or more) in the financial statements
Statement of Comprehensive Income Items – Nine Months 2023 vs. Nine Months 2022
41% increase in Interest Income
Due to recognition from new launches, Edades West and Rockwell Center in Bacolod.
22% increase in Lease Income
Due to higher average rental rates of retail and office segment.
28% increase in Other Revenues
Mainly driven by improved performance of Aruga serviced apartments, Rockwell Club and Cinema.
7% decrease in Cost of Real estate
Primarily due to lower cost incurred of Proscenium and Rockwell South.
17% increase in General and Administrative Expenses
Due to higher manpower costs, fees and taxes, and improved operations from hotel and cinema.
14% increase in Selling Expenses
Due to higher marketing expenses for Edades West and Rockwell Center in Bacolod.
28% increase in Interest Expense
Primarily due to higher average loan balance and average interest rate.
8% increase in Share in Net Income of JV
Due to higher revenues from higher average rental rates of RBC Ortigas.
Statement of Financial Position items – September 30, 2023 vs. December 31, 2022
46% increase in Cash and Cash Equivalents
Primarily due to loan drawdown and collection of receivables.
44% decrease in Trade and other receivables
Primarily due to collections from Proscenium, Balmori and 32 Sanson.
18% increase in Real estate inventories
Due to land acquisitions.
14% increase in Advances to Contractors
Primarily due to additional advances for Mactan and Arton properties.
30% increase in Other Current Assets
Due to initial collections for projects placed in escrow accounts.
18% increase in Property and Equipment – net
Mainly due to transfer of Edades Aruga Apartments from real estate inventories.
76% increase in Deferred tax assets
Due to net operating loss from subsidiaries.
15% decrease in Trade and other payables
Due to land acquisition and accrued expenses payments.
6% increase in interest-bearing loans and borrowings
Due to new loan availment.
82% decrease in Pension Liability
Due to funding of pension fund contribution for the year.
8% increase in Lease liability
Due to increase in rent accrual for RBC Sheridan.
11% increase in Deposit and Other Liabilities
Due to higher deposits from pre-selling from Edades West and RCB Bel-Air.
104% increase in Attributable to Non-Controlling Interest
Due to consolidation of RGDC with 40% minority share.
Key Performance Indicators
| As indicated | For the nine months ended September 30 | |
| 2023 | 2022 | |
| ROA (*) | 5.1% | 4.5% |
| ROE (*) | 12.3% | 10.9% |
| As of September 30, 2023 | As of September 30, 2022 | |
| Current ratio (x) | 3.73 | 3.47 |
| Debt to equity ratio (x) | 0.83 | 0.87 |
| Net debt to equity Ratio (x) | 0.67 | 0.74 |
| Asset to equity ratio (x) | 2.33 | 2.34 |
| Interest coverage ratio (x) | 4.89 | 5.30 |
Notes:
(1) ROA [Net Income/Average Total Assets]
(2) ROE [Net Income/ Average Total Equity]
(3) Current ratio [Current assets/Current liabilities]
(4) Debt to equity ratio [Total interest bearing debt / Total Equity]
(5) Net debt to equity ratio [(Total Interest bearing debt)-(Cash and cash equivalents) / Total Equity]
(6) Asset to equity ratio [Total Assets/Total Equity]
(7) Interest coverage ratio [EBITDA/Interest Payments]
* ROA and ROE are annualized figures
ROA and ROE are slightly higher vs 2022 at 5.1% and 12.3% mainly from higher net income.
Current ratio increased to 3.73x from 3.47x due to lower current liabilities mainly from trade and other payables.
Debt to equity ratio decreased to 0.83x from 0.87x. Net debt to equity ratio decreased to 0.67x from 0.74x, due to higher cash and cash equivalents.
Asset to equity ratio is flat at 2.33x as of this quarter.
Overview
Investor Relations
Exchange Where Listed
Financial and Operating Highlights
FINANCIAL AND OPERATING HIGHLIGHTS
Management’s Discussion and Analysis of Financial Condition and Results of Operation
RESULTS OF OPERATIONS:
For the nine months ended 30 September 2023 and 2022
Rockwell Land Corporation (“the Group”) registered Php13,325 million in consolidated revenues, higher by 6% from last year’s Php12,471 million. Residential development accounted for 78% of the total revenues in 2023, higher than last year’s 72%.
Total EBITDA reached Php5,288 million, higher than last year’s Php4,261 million driven by higher EBITDA from residential development. Overall EBITDA margin registered at 40% of total revenues, higher than last year’s 34%. The total revenues used as basis for the EBITDA margin excludes gross revenues from the joint venture with Meralco, T.G.N Realty Corporation and International Pharmaceuticals, Inc. as these are reported separately under “Share in Net Losses (Income) in JV”. Share in net income in the joint venture contributes 6% to the Company’s total EBITDA.
Residential development and commercial development contributed 62% and 38% to the total EBITDA, respectively.
Consolidated net income after tax registered at Php2,739 million, higher than last year’s Php2,194 million. NIAT to Parent for the nine months is Php2,523 million, 26% higher from same period last year of Php2,000 million.
Business Segments
Residential Development generated Php10,427 million, contributing 78% of the total revenues for the period. Bulk of the revenues came from the sale of real estate, including accretion from interest income.
EBITDA from this segment amounted to Php3,264 million, 66% higher than the same period last year at Php1,970 million mainly attributable to projects with higher construction progress.
Commercial Development revenues amounted to Php2,898 million, 17% lower than 2022’s Php3,495 million primarily due to prior year recognition of One Proscenium unit sale. This segment contributed 22% to total revenues excluding the share in the joint venture with Meralco for the Rockwell Business Center in Ortigas, Pasig City.
Retail Operations which include retail leasing, interest income and other mall revenues generated revenues of Php1,767 million, 30% higher than last year’s Php1,362 million due to improved average rental and occupancy rate. Office Operations generated Php958 million which is equivalent to 7% of the total revenues. Office operations include office leasing, sale of office units and other office revenues.
Hotel Operations, contributed 1% of the total revenues. Its revenues amounted to Php173 million and costs and expenses at Php114 million. Resulting EBITDA is at Php59 million.
The segment’s EBITDA amounted to Php2,024 million, 12% lower from the same period last year due to prior year recognition from One Proscenium unit sale. This includes the share in net income in the joint venture amounting to Php304 million, contributing 15% to the segment’s EBITDA.
Costs and Expenses
Cost of real estate and selling amounted to Php7,322 million. The cost of real estate and selling to total revenue ratio is at 55%, lower than last year’s 62% due to higher lease income and higher interest income accretion from new launches.
General and administrative expenses (G&A) amounted to Php1,634 million, 17% higher than last year mainly due to higher hotel and cinema direct costs from improved operations, higher manpower related costs and higher taxes and fees.
Interest Expense amounted to Php1,155 million, higher by 28% than last year’s Php902 million. The increase was mainly due to higher average loan balance and interest rate.
Share in Net Income (Losses) in JV and associates realized share in net income of JV and associate amounted to Php320 million, higher than last year’s Php297 million. The 8% growth from last year is mainly due to RBC-Ortigas higher rental rate. At its 70% share, the Company generated total revenues of Php443 million and share in net income of Php304 million. The share in net income is reported net of taxes and represents the Company’s share in the operations generated by RBC.
Project and capital expenditures
The Group spent a total of Php11.5 billion (gross of VAT) for project and capital expenditures for the nine months of 2023. Bulk of the expenditures pertained to land acquisitions and development costs, mainly that of The Arton, Mactan and Nara Residences. These were funded mainly by internally generated funds.
Financial Condition
The Group’s total assets as of September 30, 2023 amounted to Php74.1 billion, slightly higher from 2022’s year-end amount of Php69.7 billion. On the other hand, total liabilities amounted to Php42.2 billion, higher from 2022’s year-end amount of Php42.1 billion. The increase in total assets were mainly from cash and cash equivalents and other current assets.
Current ratio as of September 30, 2023 increased to 3.73x from 3.16x as of end 2022. Net debt to equity ratio is at 0.67x as of September 30, 2023, lower compared to 2022’s year-end ratio of 0.78x.
Causes for any material changes (+/- 5% or more) in the financial statements
Statement of Comprehensive Income Items – Nine Months 2023 vs. Nine Months 2022
41% increase in Interest Income
Due to recognition from new launches, Edades West and Rockwell Center in Bacolod.
22% increase in Lease Income
Due to higher average rental rates of retail and office segment.
28% increase in Other Revenues
Mainly driven by improved performance of Aruga serviced apartments, Rockwell Club and Cinema.
7% decrease in Cost of Real estate
Primarily due to lower cost incurred of Proscenium and Rockwell South.
17% increase in General and Administrative Expenses
Due to higher manpower costs, fees and taxes, and improved operations from hotel and cinema.
14% increase in Selling Expenses
Due to higher marketing expenses for Edades West and Rockwell Center in Bacolod.
28% increase in Interest Expense
Primarily due to higher average loan balance and average interest rate.
8% increase in Share in Net Income of JV
Due to higher revenues from higher average rental rates of RBC Ortigas.
Statement of Financial Position items – September 30, 2023 vs. December 31, 2022
46% increase in Cash and Cash Equivalents
Primarily due to loan drawdown and collection of receivables.
44% decrease in Trade and other receivables
Primarily due to collections from Proscenium, Balmori and 32 Sanson.
18% increase in Real estate inventories
Due to land acquisitions.
14% increase in Advances to Contractors
Primarily due to additional advances for Mactan and Arton properties.
30% increase in Other Current Assets
Due to initial collections for projects placed in escrow accounts.
18% increase in Property and Equipment – net
Mainly due to transfer of Edades Aruga Apartments from real estate inventories.
76% increase in Deferred tax assets
Due to net operating loss from subsidiaries.
15% decrease in Trade and other payables
Due to land acquisition and accrued expenses payments.
6% increase in interest-bearing loans and borrowings
Due to new loan availment.
82% decrease in Pension Liability
Due to funding of pension fund contribution for the year.
8% increase in Lease liability
Due to increase in rent accrual for RBC Sheridan.
11% increase in Deposit and Other Liabilities
Due to higher deposits from pre-selling from Edades West and RCB Bel-Air.
104% increase in Attributable to Non-Controlling Interest
Due to consolidation of RGDC with 40% minority share.
Key Performance Indicators
| As indicated | For the nine months ended September 30 | |
| 2023 | 2022 | |
| ROA (*) | 5.1% | 4.5% |
| ROE (*) | 12.3% | 10.9% |
| As of September 30, 2023 | As of September 30, 2022 | |
| Current ratio (x) | 3.73 | 3.47 |
| Debt to equity ratio (x) | 0.83 | 0.87 |
| Net debt to equity Ratio (x) | 0.67 | 0.74 |
| Asset to equity ratio (x) | 2.33 | 2.34 |
| Interest coverage ratio (x) | 4.89 | 5.30 |
Notes:
(1) ROA [Net Income/Average Total Assets]
(2) ROE [Net Income/ Average Total Equity]
(3) Current ratio [Current assets/Current liabilities]
(4) Debt to equity ratio [Total interest bearing debt / Total Equity]
(5) Net debt to equity ratio [(Total Interest bearing debt)-(Cash and cash equivalents) / Total Equity]
(6) Asset to equity ratio [Total Assets/Total Equity]
(7) Interest coverage ratio [EBITDA/Interest Payments]
* ROA and ROE are annualized figures
ROA and ROE are slightly higher vs 2022 at 5.1% and 12.3% mainly from higher net income.
Current ratio increased to 3.73x from 3.47x due to lower current liabilities mainly from trade and other payables.
Debt to equity ratio decreased to 0.83x from 0.87x. Net debt to equity ratio decreased to 0.67x from 0.74x, due to higher cash and cash equivalents.
Asset to equity ratio is flat at 2.33x as of this quarter.
Company Disclosures
General Information Sheet
Annual Stockholders’ Meeting and Reports
Corporate Governance
Corporate Social Responsibility
FAQs
