Robinsons Land Earns Highest Credit Rating

Robinsons Land Corporation (RLC), one of the leading real estate developers in the Philippines, has received the highest Issue Credit Rating of PRS Aaa, with a Stable Outlook, from Philippine Rating Services Corporation (PhilRatings) for its proposed bond issuance of up to 10.0 billion, with a 5.0 billion oversubscription option.

Photo Insert: A Stable Outlook means that "the rating is likely to remain unchanged over the next twelve months."

“Philratings’ assignment of the highest issuer rating is a recognition of Robinsons Land’s strong fundamentals and financial stability. It is a vote of confidence in the Company’s ability to create long-term shareholder value,” said RLC President and CEO Frederick D. Go.

This is the first tranche of the company's shelf-registered Debt Securities Program, totaling 30.0 billion, approved by its Board of Directors on June 1, 2022.

According to Philratings, obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor has a very strong financial capacity to meet its financial commitment on the obligation. A Stable Outlook means that "the rating is likely to remain unchanged over the next twelve months."

The Issue Credit Rating assigned to RLC takes into account the company's strong competitive position, high liquidity, sound capitalization, and experienced management team.

RLC currently has a diverse portfolio of 53 lifestyle centers; 28 prime office developments anchored on the resilient BPO sector; 5 workable centers in the growing flexible workspace segment; 24 diverse, multi-branded hotel properties comprised of upscale deluxe hotels, midmarket boutique city and resort hotels, essential service value hotels, and luxury resorts; 7 industrial facilities capitalizing on abundant opportunities in the logistics sector; and over 100 resident properties.

Despite a challenging operating environment caused by the global pandemic, RLC maintained its strong cash position. Operating cash flow, which is always positive, more than covered short-term debt. Total assets remained strong at P223.0 billion as of March 31, 2022.

Its capital structure is sound, with debt at very low levels. Total equity remained healthy at P128.3 billion at the end of March 2022, while net book value per share of P24.22 exceeded pre-pandemic levels. Debt-to-equity (DE) was 0.3x, indicating ample room for additional borrowings to support RLC's expansion and growth strategies if necessary.

Subject to regulatory approvals, the company intends to list the bonds on the Philippine Dealing and Exchange Corp. within the year.

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