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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 three months ended 31 March 2023 and 2022
Rockwell Land Corporation (“the Group”) registered Php3,653 million in consolidated revenues, higher by 10% from last year’s Php3,311 million. Residential development accounted for 73% of the total revenues in 2023, higher than last year’s 66%.
Total EBITDA reached Php1,393 million, higher than last year’s Php1,275 million driven by higher EBITDA from residential development. Overall EBITDA margin registered at 38% of total revenues, slightly lower from last year’s 39%. 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 7% to the Company’s total EBITDA.
Residential development and commercial development contributed 48% and 52% to the total EBITDA, respectively.
Consolidated net income after tax registered at Php655 million, higher than last year’s Php617 million. NIAT to Parent for the three months is Php600 million, 14% higher from same period last year of Php524 million.
Business Segments
Residential Development generated Php2,649 million, contributing 73% of the total revenues for the period. Bulk of the revenues came from the sale of condominium units, including accretion from interest income.
EBITDA from this segment amounted to Php664 million, 28% higher than the same period last year at Php517 million mainly attributable to projects with higher construction progress.
Commercial Development revenues amounted to Php1,003 million, 12% lower than 2022’s Php1,141 million primarily due to prior year recognition of sale of One Proscenium. This segment contributed 27% to total revenues excluding the share in the joint venture with Meralco for the Rockwell Business Center in Ortigas, Pasig City.
Retail Operations which includes retail leasing, interest income and other mall revenues generated revenues of Php571 million, 55% higher than last year’s Php367 million due to improved average rental and occupancy rate. Office Operations generated Php355 million which is equivalent to 10% of the total revenues. Office operations include office leasing, sale of office units and other office revenues.
Hotel Operations, contributed 2% of the total revenues. Its revenues amounted to Php77 million and costs and expenses at Php52 million. Resulting EBITDA is at Php25 million.
The segment’s EBITDA amounted to Php729 million, 4% lower from the same period last year due to prior year recognition from sale of One Proscenium. This includes the share in net income in the joint venture amounting to Php99 million, contributing 14% to the segment’s EBITDA.
Costs and Expenses
Cost of real estate and selling amounted to Php2,076 million. The cost of real estate and selling to total revenue ratio is at 57%, lower than last year’s 58% due to higher lease income and higher interest income accretion from new launches.
General and administrative expenses (G&A) amounted to Php476 million, 18% higher than last year mainly due to higher cinema occupancy and admin costs from improved operations, higher manpower related costs and higher taxes and fees.
Interest Expense amounted to Php351 million, higher by 18% than last year’s Php298 million. The increase was mainly due to higher average loan balance and interest rate.
Share in Net Income (Losses) in JV associates realized share in net income of JV and associate amounted to Php101 million, higher than last year’s Php94 million. The 7% growth from last year is mainly due to RBC-Ortigas higher average occupancy and rental rate. At its 70% share, the Company generated total revenues of Php150 million and share in net income of Php99 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 Php2.1 billion (gross of VAT) for project and capital expenditures for the three months of 2023. Bulk of the expenditures pertained to development costs, mainly that of The Arton, Proscenium, Rockwell South, Mactan and Balmori Suites. These were funded mainly by internally generated funds.
Financial Condition
The Group’s total assets as of March 31, 2023 amounted to Php73.1 billion, slightly higher from 2022’s year-end amount of Php69.7 billion. On the other hand, total liabilities amounted to Php44.9 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 March 31, 2023 decreased to 3.22x from 3.16x as of end 2022. Net debt to equity ratio is at 0.75x as of March 31, 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 – Three Months 2023 vs. Three Months 2022
32% increase in Interest Income
Due to recognition from new launches, Edades West, 8 Benitez Suites and Rockwell Center in Bacolod.
35% increase in Lease Income
Due to higher average rental and occupancy rate of retail segment.
45% increase in Other Revenues
Mainly driven by improved performance of Aruga serviced apartments, Rockwell Club and Cinema.
7% increase in Cost of Real Estate
Due to start of cost recognition from 32 Sanson Sillion, 8 Benitez Suites, Mactan Villa and Arton East.
18% increase in General and Administrative Expenses
Due to higher manpower costs, fees and taxes, and improved operations from hotel and cinema.
22% increase in Selling Expenses
Due to higher marketing expenses for projects Edades West, Rockwell Center Bacolod and Balmori Suites.
18% increase in Interest Expense
Primarily due to higher average loan balance and average interest rate.
7% increase in Share in Net Income of JV
Due to higher revenues from higher average rental and occupancy rates of RBC Ortigas.
Statement of Financial Position items – March 31, 2023 vs. December 31, 2022
95% increase in Cash and Cash Equivalents
Primarily due to loan drawdown and collection of receivables.
21% decrease in Trade and other receivables
Primarily due to collections from Proscenium, Mactan and 32 Sanson.
6% increase in Advances to contractors
Primarily due to advances made for projects Proscenium, Mactan and Terreno South.
18% increase in Other Current Assets
Due to payment of escrow accounts for projects Edades West, Bel-Air Phase 1, and Terreno South
16% increase in Deferred tax assets
Due to net loss from RPDC.
11% increase in interest-bearing loans and borrowings
Due to new loan availments.
32% increase in Pension Liability
Due to accrual of retirement expense for the three months of 2023.
5% increase in Deposit and Other Liabilities
Due to higher excess collections over recognized receivables from Mactan Villa, and Edades West.
Key Performance Indicators
As indicated | For the three months ended March 31 | |
2023 | 2022 | |
ROA (*) | 3.7% | 3.8% |
ROE (*) | 9.4% | 9.9% |
As of March 31, 2023 | As of March 31, 2022 | |
Current ratio (x) | 3.22 | 3.45 |
Debt to equity ratio (x) | 0.99 | 1.00 |
Net debt to equity Ratio (x) | 0.75 | 0.92 |
Asset to equity ratio (x) | 2.59 | 2.48 |
Interest coverage ratio (x) | 3.44 | 3.34 |
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 lower vs 2022 at 3.7% and 9.4% mainly from higher total assets and equity.
Current ratio decreased to 3.22x from 3.45x due to higher current liabilities mainly from subscription payable.
Debt to equity ratio decreased to 0.99x from 1.00x. Net debt to equity ratio decreased to 0.75x from 0.92x, due to higher cash and cash equivalents.
Asset to equity ratio is higher at 2.59x vs 2.48x last year due higher increase in total assets than equity due to loan proceeds.
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 three months ended 31 March 2023 and 2022
Rockwell Land Corporation (“the Group”) registered Php3,653 million in consolidated revenues, higher by 10% from last year’s Php3,311 million. Residential development accounted for 73% of the total revenues in 2023, higher than last year’s 66%.
Total EBITDA reached Php1,393 million, higher than last year’s Php1,275 million driven by higher EBITDA from residential development. Overall EBITDA margin registered at 38% of total revenues, slightly lower from last year’s 39%. 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 7% to the Company’s total EBITDA.
Residential development and commercial development contributed 48% and 52% to the total EBITDA, respectively.
Consolidated net income after tax registered at Php655 million, higher than last year’s Php617 million. NIAT to Parent for the three months is Php600 million, 14% higher from same period last year of Php524 million.
Business Segments
Residential Development generated Php2,649 million, contributing 73% of the total revenues for the period. Bulk of the revenues came from the sale of condominium units, including accretion from interest income.
EBITDA from this segment amounted to Php664 million, 28% higher than the same period last year at Php517 million mainly attributable to projects with higher construction progress.
Commercial Development revenues amounted to Php1,003 million, 12% lower than 2022’s Php1,141 million primarily due to prior year recognition of sale of One Proscenium. This segment contributed 27% to total revenues excluding the share in the joint venture with Meralco for the Rockwell Business Center in Ortigas, Pasig City.
Retail Operations which includes retail leasing, interest income and other mall revenues generated revenues of Php571 million, 55% higher than last year’s Php367 million due to improved average rental and occupancy rate. Office Operations generated Php355 million which is equivalent to 10% of the total revenues. Office operations include office leasing, sale of office units and other office revenues.
Hotel Operations, contributed 2% of the total revenues. Its revenues amounted to Php77 million and costs and expenses at Php52 million. Resulting EBITDA is at Php25 million.
The segment’s EBITDA amounted to Php729 million, 4% lower from the same period last year due to prior year recognition from sale of One Proscenium. This includes the share in net income in the joint venture amounting to Php99 million, contributing 14% to the segment’s EBITDA.
Costs and Expenses
Cost of real estate and selling amounted to Php2,076 million. The cost of real estate and selling to total revenue ratio is at 57%, lower than last year’s 58% due to higher lease income and higher interest income accretion from new launches.
General and administrative expenses (G&A) amounted to Php476 million, 18% higher than last year mainly due to higher cinema occupancy and admin costs from improved operations, higher manpower related costs and higher taxes and fees.
Interest Expense amounted to Php351 million, higher by 18% than last year’s Php298 million. The increase was mainly due to higher average loan balance and interest rate.
Share in Net Income (Losses) in JV associates realized share in net income of JV and associate amounted to Php101 million, higher than last year’s Php94 million. The 7% growth from last year is mainly due to RBC-Ortigas higher average occupancy and rental rate. At its 70% share, the Company generated total revenues of Php150 million and share in net income of Php99 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 Php2.1 billion (gross of VAT) for project and capital expenditures for the three months of 2023. Bulk of the expenditures pertained to development costs, mainly that of The Arton, Proscenium, Rockwell South, Mactan and Balmori Suites. These were funded mainly by internally generated funds.
Financial Condition
The Group’s total assets as of March 31, 2023 amounted to Php73.1 billion, slightly higher from 2022’s year-end amount of Php69.7 billion. On the other hand, total liabilities amounted to Php44.9 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 March 31, 2023 decreased to 3.22x from 3.16x as of end 2022. Net debt to equity ratio is at 0.75x as of March 31, 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 – Three Months 2023 vs. Three Months 2022
32% increase in Interest Income
Due to recognition from new launches, Edades West, 8 Benitez Suites and Rockwell Center in Bacolod.
35% increase in Lease Income
Due to higher average rental and occupancy rate of retail segment.
45% increase in Other Revenues
Mainly driven by improved performance of Aruga serviced apartments, Rockwell Club and Cinema.
7% increase in Cost of Real Estate
Due to start of cost recognition from 32 Sanson Sillion, 8 Benitez Suites, Mactan Villa and Arton East.
18% increase in General and Administrative Expenses
Due to higher manpower costs, fees and taxes, and improved operations from hotel and cinema.
22% increase in Selling Expenses
Due to higher marketing expenses for projects Edades West, Rockwell Center Bacolod and Balmori Suites.
18% increase in Interest Expense
Primarily due to higher average loan balance and average interest rate.
7% increase in Share in Net Income of JV
Due to higher revenues from higher average rental and occupancy rates of RBC Ortigas.
Statement of Financial Position items – March 31, 2023 vs. December 31, 2022
95% increase in Cash and Cash Equivalents
Primarily due to loan drawdown and collection of receivables.
21% decrease in Trade and other receivables
Primarily due to collections from Proscenium, Mactan and 32 Sanson.
6% increase in Advances to contractors
Primarily due to advances made for projects Proscenium, Mactan and Terreno South.
18% increase in Other Current Assets
Due to payment of escrow accounts for projects Edades West, Bel-Air Phase 1, and Terreno South
16% increase in Deferred tax assets
Due to net loss from RPDC.
11% increase in interest-bearing loans and borrowings
Due to new loan availments.
32% increase in Pension Liability
Due to accrual of retirement expense for the three months of 2023.
5% increase in Deposit and Other Liabilities
Due to higher excess collections over recognized receivables from Mactan Villa, and Edades West.
Key Performance Indicators
As indicated | For the three months ended March 31 | |
2023 | 2022 | |
ROA (*) | 3.7% | 3.8% |
ROE (*) | 9.4% | 9.9% |
As of March 31, 2023 | As of March 31, 2022 | |
Current ratio (x) | 3.22 | 3.45 |
Debt to equity ratio (x) | 0.99 | 1.00 |
Net debt to equity Ratio (x) | 0.75 | 0.92 |
Asset to equity ratio (x) | 2.59 | 2.48 |
Interest coverage ratio (x) | 3.44 | 3.34 |
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 lower vs 2022 at 3.7% and 9.4% mainly from higher total assets and equity.
Current ratio decreased to 3.22x from 3.45x due to higher current liabilities mainly from subscription payable.
Debt to equity ratio decreased to 0.99x from 1.00x. Net debt to equity ratio decreased to 0.75x from 0.92x, due to higher cash and cash equivalents.
Asset to equity ratio is higher at 2.59x vs 2.48x last year due higher increase in total assets than equity due to loan proceeds.