Robinsons Land Corp. (RLC), a leading real estate developer in the Philippines, 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 billion, with an oversubscription option of up to ₱5 billion.
This is the first tranche of the company’s shelf-registered Debt Securities Program in the aggregate principal amount of ₱30 billion.
According to Philratings, obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligator’s capacity to meet its financial commitment on the obligation is extremely strong. A Stable Outlook is an indication that “the rating is likely to remain unchanged in the next twelve months.”
The assigned Issue Credit Rating takes into account RLC’s strong competitive position, high liquidity, sound capitalization, and its experienced management team.
To-date, RLC has an extensive portfolio of 53 lifestyle centers; 28 prime office developments anchored on the resilient BPO sector; 5 work.able centers in the growing flexible workspace segment; 24 diverse, multi-branded hotel properties consisting of upscale deluxe hotels, mid-market boutique city and resort hotels, essential service value hotels, and luxury resorts; 7 industrial facilities capitalizing on abundant opportunities in the logistics sector; over 100 residential properties; and 20 mixed-use developments, including 3 landmark Destination Estates that espouse the Live-Work-Play-Inspire lifestyle.
RLC maintained its strong cash position despite a challenging operating environment caused by the global pandemic. Operating cash flow, which is always at a surplus, amply covered short-term debt. Total assets remained robust at P223 billion as of end-March 2022.
Capital structure is sound, with debt at very conservative levels. As of end-March 2022, total equity remained healthy at P128.3 billion, while net book value per share of P24.22 exceeded pre-pandemic levels. Debt-to-equity (DE) stood at 0.3x, indicating ample room for additional borrowings, if needed, to support RLC’s expansion plans and growth strategies.
“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 Go.
The company plans to list the bonds on the Philippine Dealing and Exchange Corp. within the year, subject to regulatory approvals.
