Last week, Robinsons Land Corporation (RLC) shares were one of the most actively traded stocks in the market. Investors, particularly foreigners, loaded on the firm’s shares, making a 0.82% increase in its stock price. As a matter of fact, the company traded 20.56 million shares worth P492.13 million last March 18, 2019 to March 22, 2019. RLC shares closed at P24.65 on Friday, which is comparatively higher than its P24 price on March 25. So, what’s driving the RLC hype?
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One major reason causing the RLC share hype is the positive outlook on property investments this coming year. RLC’s good earnings influence investors to come back again not only for the RLC but for the whole property sector. BSP has just released a statement including the possible reserve requirement cut for banks this year which can potentially help obtain low cost funding in the property sector. This plan will not only reduce costs but will also increase customer demand because of P90-100 billion extra liquidity in the market.
Along with its hiking stock price, RLC also generated 40% higher net income in 2018. The firm hit P8.23 billion, higher than the P5.9 billion in 2017. The consolidated revenue was also up by 31% or P29.44 billion in figures. With a total of 51 malls with 1.5 million SQM total leasable space, the P11.94 billion of its revenue came from its mall division. The residential and office properties of the firm also rose P8.69 billion and P4.11 billion respectively. The net foreign buying of the company sit at P4.01 million in a span of 4 days, from March 11 to 14.
There is a potential for the firm to reach P9 billion net income this year, considering the local and international sales in terms of its residential units, the growth of its revenues from malls, and the increasing demand for office spaces. The expanding business process management sector is driving the increase for office leases which is a positive outlook for RLC. Because of this, the future of the firm remains solid.