Ladies and gentlemen, good morning and thank you for joining us for our second quarter analyst briefing. As we continue to deliver solid performance in the first half of the year driven by our disciplined execution and sustained strength across our diversified portfolio, reflecting the strength of our operations amid the challenging operating environment.

Anyway, joining us today are our President and CEO, Miss Mybelle Socorro V. Aragon-GoBio; Executive Vice President and General Manager of Malls and Destination Estates Division, Mr.

Faraday Y. Go; our Chief Financial Officer, Mr.

Kerwin Tan, and the rest of the Investor Relations. Sitting with us today are Mr.

Kerwin Tan and Mr. Ramon Rivero, Chief Strategist and GM for Robinsons Sports and Leisure.

After the presentation, we will open the floor for Q&A session. Thank you.

Before we proceed, I would like to draw your attention to this disclaimer. The information in this presentation is for informational purposes only.

Certain statements here may be forward-looking and actual results could differ materially due to various risks and uncertainties. Now let's start the presentation.

Mr. Kerwin, you may begin.

Thank you. Good morning.

Robinsons Land remains committed to strengthening its diversified portfolio and broadening its nationwide footprint through developments that support sustainable growth and long-term value creation. During the quarter, additional work.able centers were added to the pipeline, further expanding the company's flexible workspace offerings.

During the half, Robinsons Land delivered solid financial results and sustained its growth momentum. RLC delivered strong first half results with consolidated revenues rising 10% year on year to ₱25.42 billion, supported by solid contributions from both the investment and development portfolios.

Operating profitability remained healthy with EBITDA increasing 8% to ₱13.48 billion. Growth was tempered by higher utility expenses, as the first half included a lower cost base in the first quarter of 2025, prior to the power rate adjustments, coupled with higher commission expenses in line with increased sales recognition.

Earnings momentum remains strong as net income expanded 12% to ₱9.02 billion. The faster growth versus EBITDA was mainly driven by lower financing costs and reduced effective tax rate following additional asset infusion into RCR in the third quarter of 2025.

Meanwhile, net income attributable to parent increased by 5% to ₱7.21 billion. The comparatively slower growth was primarily due to the higher minority ownership in RCR, which increased to 44.33% following the block placements completed in January.

Turning to our balance sheet, total assets increased by 2% to ₱281 billion as of the end of the first half, primarily driven by higher cash balances from strong operating cash flows and proceeds from the recent block placement, as well as the additional capital expenditures during the period. Total liabilities declined by 4% to ₱86.87 billion, mainly reflecting the repayment of matured bonds.

This also brought interest-bearing debt down to ₱33.57 billion. Meanwhile, total equity strengthened by 5% to ₱193.87 billion, while parent equity similarly increased by 5% to ₱183.81 billion, largely driven by additional equity reserves recognized from the recent block placement.

Combined with a higher cash position, the reduction in debt improved our net debt-to-equity ratio to 10.95%, reinforcing the strength of RLC's balance sheet and conservative leverage profile. From a cash flow perspective, cash and cash equivalents increased to ₱13.44 billion, supported by the successful ₱7 billion block placement completed in January of 2026, alongside healthy operating cash generation.

During the period, we deployed ₱7.53 billion in capital expenditures to support ongoing developments and expansion initiatives, while generating positive free cash flow of ₱8.02 billion. RLC delivered a strong first half, building on its full-year momentum.

Consolidated revenues reached ₱25.42 billion, representing a 10% year-on-year increase, driven by strong performance of both our investment and development portfolios. EBITDA grew by 8% to ₱13.47 billion, with growth moderating relative to revenues, mainly due to higher utility costs, as the first half 2025 included a lower cost base in the first quarter prior to the power rate adjustments, coupled with higher commission expenses in line with increased sales recognition.

EBIT grew by 8%, consistent with EBITDA growth, supported by slower increase in depreciation from newly operational assets. Meanwhile, net income increased by 12% to ₱9.02 billion, outpacing EBIT growth, mainly due to lower interest expense and a lower effective income tax rate following the infusion of additional assets into RCR during the third quarter of 2025.

Net income attributable to parent grew by 5% to ₱7.21 billion. The more moderate growth relative to operating performance was mainly due to higher minority interest in RCR, which increased to 44.33% this year from an average of 39.35% last year following the subsequent block placement completed in January.

On a quarter-on-quarter basis, revenues increased by 7%. EBITDA and EBIT grew at a more moderate pace of 4% and 5%, respectively.

This is mainly due to the higher sales commissions associated with the increase in realized sales. Meanwhile, net income attributable to the parent increased by 4% quarter on quarter, supported by lower interest expenses and a lower effective income tax rate following the previously mentioned asset infusion into RCR.

RLC maintained its low debt level from year-end 2025 with total debt at ₱33.69 billion. The lower debt base was achieved through repayments supported by strong positive operating cash flows and additional liquidity generated from block placement proceeds.

Roughly 67% of the borrowings are fixed-rate, providing stability against interest rate movements, while 33% are floating-rate. Debt portfolio consists of ₱18 billion in bonds and ₱15.7 billion in long-term bank loans, with an effective interest rate of 5.7% and a weighted average maturity of 1.7 years.

Overall, RLC continues to maintain a healthy and manageable debt profile, supported by strong cash generation and disciplined capital management. RLC's portfolio remains strategically anchored on its investment portfolio, which continues to be the company's primary driver of revenues and earnings.

For the first half, investment portfolio contributed 72% of consolidated revenues and accounted for 82% and 77% of consolidated EBITDA and EBIT, respectively. The Malls Division remained the largest contributor within the investment portfolio.

Mall revenues increased on the back of stronger consumer spending and sustained tenant activity, with same-mall rental growth of 4% year on year, alongside contributions from newly opened Pagadian Mall and Bago-Silay Town Center, as well as higher amusement revenues. EBITDA and EBIT growth was moderated by higher power rates and by additional depreciation from the new malls.

Meanwhile, the development portfolio accounted for the remaining 28% of the consolidated revenues and contributed 18% and 23% of consolidated EBITDA and EBIT, respectively, driven mainly by the group's organic residential projects and its share in net income of the joint ventures. Residential revenues increased mainly as more contracts from prior years reached the equity threshold, coupled with higher percentage of completion recognized from ongoing projects.

EBITDA and EBIT grew at a faster pace than revenues due to lower general and administrative expenses, sustaining the positive momentum of the development portfolio. A more detailed discussion of each business unit's performance will be presented in the succeeding slides.

RCR continues to play an increasingly significant role in RLC's consolidated financial performance, supported by its expanding portfolio and growing recurring income base. During the first half, RCR generated ₱6.83 billion in revenues, accounting for 27% of RLC's consolidated revenues.

EBITDA increased by 43% year on year to ₱5.73 billion, while net income rose by 39% to ₱4.98 billion, mainly driven by the infusion of nine malls completed last year, which further expanded RCR's income-generating capacity. Net of minority interest, RCR contributed approximately 44% of RLC's net income attributable to parent, highlighting its growing importance within the group's earnings mix.

As of the first half of 2026, RCR's portfolio now consists of 38 premium assets composed of 17 office properties and 21 malls across 25 strategic locations, with total GLA reaching 1.15 million square meters. Portfolio occupancy remained strong at 98%, while weighted average lease expiry, or WALE, stands at 4.03 years.

In terms of tenant mix, retail tenants account for 47% and BPOs at 46%, with the balance coming from traditional offices and seat leasing, reflecting a well-diversified and resilient tenant base. During the quarter, the board also approved the infusion of additional six malls, which will further expand the portfolio and provide additional recurring income.

Overall, RCR continues to be a vital contributor to RLC's recurring income and serves as a strategic platform for future asset monetization and capital recycling with a clear pipeline for continued portfolio expansion. I now turn you over to Mr.

Ramon Rivero for the operational highlights per business unit.

Thank you, Mr. Kerwin Tan, and good morning to everyone in the call.

Starting with Malls, our Malls segment continued to deliver solid results in the second quarter, with revenues reaching ₱5 billion, up 5% year on year, supported by rental revenue growth and healthy mall traffic. This lifted first half revenues to ₱10 billion, up 6%, while EBITDA and EBIT increased to ₱6 billion and ₱4.1 billion, respectively, highlighting the strength of our recurring income base and retail platform.

We also maintained a strong 94% occupancy rate, ahead of the industry average of 92.3%, reflecting the quality of our assets and continued tenant demand. Robinsons Malls now operates approximately 1.7 million square meters of leasable space, demonstrating the enduring relevance of our malls and the resilience of consumer spending across our network.

Moving to our Office segment, the business continued to provide a stable source of recurring income in the second quarter, with revenues reaching ₱2.2 billion, up 5% year on year, supported by sustained demand from BPO tenants, healthy lease renewals, and improving occupancy. For the first half, revenues grew 6% to ₱4.37 billion, while EBITDA and EBIT increased 5% to ₱3.43 billion and ₱2.79 billion, respectively.

The segment's performance underscores the resilience of our office portfolio and the strength of our tenant base despite a dynamic operating environment. Occupancy improved further to 87% from 86% in the first quarter, reflecting successful leasing initiatives while remaining above industry levels.

In total, our office portfolio spans close to 900,000 square meters of gross leasable area with 34 office buildings. During the second quarter, we completed our second work.able center at GBF Center 1 in Bridgetowne, Quezon City, exclusively serving GoTyme.

This addition expands our network to 17 centers and increases total capacity by over 400 seats, bringing our overall seat count to more than 4,400. Complementing our commercial portfolio, our Hotels segment continued to deliver strong results during the period, driven by the growing contribution of Fili and NUSTAR, together with the sustained strength of our international hotel brands.

In the second quarter, hotel revenues increased 7% year on year to ₱1.69 billion, while EBITDA grew 16% to ₱544 million. For the first half of 2026, revenues reached ₱3.41 billion, up 10% from the same period last year, while EBITDA and EBIT increased 13% to ₱1.08 billion and ₱588 million, respectively.

The segment's continued growth reflects the benefits of our strategic shift toward higher-yield hospitality assets, which continue to enhance both revenue quality and profitability. Operationally, our 27 owned hotel assets comprising over 4,000 room keys maintained a stable system-wide occupancy rate of 65% during the period.

Our Logistics segment delivered another quarter of healthy growth. Second quarter revenues increased 60% year on year to ₱292 million, while EBITDA and EBIT grew 69% and 101% to ₱268 million and ₱200 million, respectively.

The strong year-on-year growth reflects a combination of the continued contribution from our logistics assets and a relatively softer operating base in the comparable period last year. For the first half, revenues grew 25% to ₱561 million, while EBITDA and EBIT increasing 27% and 35% to ₱517 million and ₱405 million, respectively.

RLX portfolio comprises 15 industrial facilities with approximately 320,000 square meters of gross leasable area, providing a solid platform for the segment's continued growth. Moving to our Residential segment, demand remained healthy during the period, with net sales from both our organic and joint venture projects reaching ₱5 billion in the first half, up 32% year on year.

Our inventory remained broadly stable at ₱44.2 billion, while standby revenues stood at ₱42.4 billion, providing a healthy pipeline for future revenue recognition. Supported by higher construction progress and revenue recognition across our residential developments, second quarter revenues grew 11% year on year to ₱3.08 billion, while EBITDA reached ₱684 million.

For the first half, revenues increased 23% to ₱5.81 billion, while EBITDA and EBIT rose 24% and 25% to ₱1.44 billion and ₱1.36 billion, respectively. Our joint venture portfolio delivered a strong second quarter, with equity earnings increasing 48% to ₱548 million.

This brought first half equity earnings to ₱729 million, up 3% year on year, reflecting continued contributions from our key development partnerships. Our Destination Estates segment delivered a strong rebound in the second quarter, with revenues rising 45% year on year to ₱352 million.

EBITDA and EBIT likewise increased by 56% and 51% to ₱227 million and ₱218 million, respectively. For the first half, revenues reached ₱510 million, while EBITDA and EBIT totaled to ₱309 million and ₱290 million, respectively, supported by higher project completions and revenue recognition from our joint venture developments.

Robinsons Sports and Leisure, or RSL, previously introduced as Robinsons Sports, Entertainment, and Recreation, is RLC's newest business unit focused on active recreation, leisure, and entertainment experiences for Filipino communities. As part of our ongoing expansion, we are set to launch several new concepts in the fourth quarter of this year, including GX Sports, which will introduce HYROX and pickleball experiences across our Galleria network, and Helios Beta, a tournament-grade pickleball facility in Bridgetowne.

These initiatives support our strategy of creating differentiated lifestyle destinations that promote active living, strengthen community connections, and drive overall customer engagement across our portfolio. Capital expenditures reached ₱7.5 billion during the period, up from ₱5.7 billion in the same period last year, even without significant land acquisitions.

The higher spending reflects the company's continued commitment to executing its growth strategy and advancing key projects despite ongoing industry challenges. We are on track to significantly expand our portfolio through 2030 under our Vision 5-25-50 strategy, with malls reaching 2.4 million square meters of GLA, offices growing by over 50% to 1.28 million square meters of GLA, logistics more than doubling to 600,000 square meters of GLA, and our hotel portfolio will likewise grow, with room capacity increasing by 35% to 5,681 keys.

Before I conclude, let me provide an update on several key initiatives that will support the next phase of growth across our recurring income portfolio. In Malls, we continue to invest in redevelopment and enhancement projects at Robinsons Galleria, Robinsons Manila, and Robinsons Dumaguete.

These initiatives are aimed at further improving the customer experience, strengthening asset quality, and ensuring our malls remain vibrant and competitive for the years to come. In Offices, we are laying the groundwork for future growth.

The Jewel at Mandaluyong City has already secured tenancy from one of the country's largest BPO companies, while Cybergate Dumaguete is nearing completion and will further expand our presence in key outsourcing markets. For Logistics, we remain focused on expanding our footprint to meet the evolving requirements of logistics and e-commerce occupiers.

Key developments include the FedEx regional hub in Clark, which will add over 70,000 square meters of GLA upon completion, as well as the continued expansion of our Montclair facility. Meanwhile, in Hotels, we are strengthening our hospitality platform through the upcoming openings of Fili Hotel Bridgetowne and Summit Siargao Villas in 2027, all further enhancing our presence across both business and leisure destinations.

While geopolitical and macroeconomic uncertainties remain, we continue to approach growth with discipline and conviction. We remain confident in the long-term fundamentals of the Philippine economy and believe that continuing to invest today positions us to capture future demand and create lasting value for all our stakeholders.

As others take a more cautious approach, we remain focused on executing our pipeline and building high-quality assets that will strengthen RLC's competitive position for the years ahead. Turning to RCR, RLC continues to maintain a substantial asset base that may support RCR's long-term growth and diversification.

RLC retains a substantial portfolio of malls, offices, logistics facilities, and hotels that may support future infusions into RCR. Beyond the existing portfolio, its development pipeline of over 1.5 million square meters of GLA and more than 1,000 hotel room keys provides additional long-term growth opportunities, subject to asset completion, stabilization, and RCR's investment criteria.

For this year, RLC is also evaluating a potential asset infusion into RCR from its existing portfolio. The timing, asset composition, and transaction size remain subject to final evaluation, regulatory approvals, and the requirement that any transaction be yield- and dividend-accretive to RCR shareholders.

We all look forward to building on this momentum and delivering continued growth across RLC and RCR. This concludes our presentation.

Thank you very much. We are now open for your questions.

Thank you, Ramon and Mr. Kerwin.

Some housekeeping rules for the Q&A session. To ask a question, you may use raise hand or the Q&A box, but we prefer more on the raise hand.

When your name is called upon, you may now ask the question. The first question comes from Jelline Gaza.

Jelline, you may ask the question.

Hello. Good morning, everyone.

Thank you for hosting the briefing. My first question is on your malls business.

I noticed that mall revenue growth slightly slowed a bit to around 5% growth year on year in 2Q. Can you shed some light about tenant sales, foot traffic, as well as consumption trends that you're seeing maybe across your portfolio?

Is there a differentiated trend between Metro Manila malls versus provincial locations?

For the first question, regarding the mall revenues, I think two things, no? One is seasonality, second quarter is lower than the first quarter.

Secondly, the shortened mall hours for a few months this year due to the power energy situation. It slightly affected the foot traffic at the time, but we've already reverted back to normal operations, normal mall hours.

Sure. Please go ahead.

You have

your second question?

Do you have a figure for mall SSSG just to close it out?

Mall what? Sorry.

SSSG.

Same store sales growth. For the first half, it's up 1% basically, same malls, same store sales growth.

Okay. First half, one half.

Does that mean the 2Q was a decline?

There were some months with the rains and the shorter mall hours. No, it didn't decline, but then it stayed at 1% for the first second quarter.

Okay. Understood.

Thank you. Second question is on residential pre-sales.

For both RLC-branded and JV on a quarter-on-quarter basis, it seems like it slowed down a bit. Can you share some information about how you see this trend?

Has there been a change in your own strategy, payment terms, or other competitors might have been more aggressive? Is it because of timing of completion, any other insights on this, and how we should think about this figure going forward will be most helpful.

Sorry, in terms of revenue recognition, actually second quarter is actually higher than the first quarter.

The

pre-sales, sir.

Pre-sales is down, yeah, as compared for the second quarter alone.

Second quarter is more timing because a lot of our international marketing campaigns were loaded towards June, a lot of those sales are just coming in in July, those should be reflected in the third quarter already. Then if you can see, there's also high growth in the JV sales, amounting to ₱3.6 billion consolidated.

Net sales are actually up, as with the recognized revenues.

Okay. Thank you.

Last is on office. From what I recall, office GLA last year was up double digits, around 11% to 12%, and yet office revenues for second quarter was only up 5%.

Can you comment on rental reversion trends and recent update on lease-out for the newly added office space, and what you're seeing on the demand across BPO traditional tenants? Thank you.

Hi, Jelline. I think to answer your questions, in terms of demand, we're still seeing BPO as the main source of take-up, although we also see strengths in seat leasing with our own work.able and also with other brands.

They've been taking up a lot of space. I think it's because of the high demand on the OPEX model or flexible workspaces.

I think the single-digit growth is basically more on escalation, starting a lower base in the year prior to that, hence the double-digit growth previously.

On rental reversion, on a portfolio-wide basis, what trend are we seeing?

There is some, especially on the renewals, no? We've really made it a point that occupancy is more important, we've been giving some incentives, some slight reversion.

I think last year, we were at 2% to 5% net reversion. At low single digit, we just really wanted to keep the tenants more.

If last year it was 2% to 5% positive, do you have a sense of what it is this year?

Negative.

Negative this year, 2% to 5% negative?

Yes.

Okay. Thank you so much for your insights.

Okay. Again, if you want to ask a question, either use the raise hand or the Q&A box.

Another question, there's one question, first one from BPI, Francis. Francis, you may ask the question.

Hello, good morning. I have two questions.

First on RCR, you've released a disclosure earlier, I think last month, about your upcoming infusion of six malls, if I'm not mistaken. Can you provide any guidance on the booking of this malls?

The revenues for these malls will start to accrue in the first month of third quarter 2026.

First month of... First July.

July will start to accrue, July

balance sheet. Got it.

Thank you. My next question is, again, on RCR.

Can you provide the voice BPO, if you have figure for both RCR and RLC, how much of your total GLA were voice BPO?

For voice BPO, for total RLC, it's around 30% only.

How about for RCR?

I don't have the breakdown right now, but more or less it's around 30% for entire portfolio.

Got it. Thanks.

My last question is on unbooked revenues for the residential segment. How much of your current unbooked revenues of that ₱42 billion were booked or were expected to be recognized for this year, for the remainder of the second half, or for the second half of 2026?

We don't usually provide forward guidance, yeah, but approximately conservatively about ₱4 billion for the remainder. ₱4 billion additional.

Okay.

Got

it. Thank you so much.

That's all from my end.

Thanks, Francis. Next question will be coming from Raffy Mendoza from Maybank.

Raffy, you may ask the question.

Yeah. Thanks for the briefing.

My first question is on the residential segment, particularly the rise in JV net sales take-up. Can you provide more color on these specific projects that were doing quite well in the second quarter?

There're two projects in particular that are joint ventures that did particularly well. First is our joint venture with Shangri-La, specifically the Aurelia in BGC.

As we commence with the turnover of the project, we saw a spike in additional sales. Then the same is going for our other joint venture with Hongkong Land, particularly the Velaris project.

As it nears completion, we also saw a spike in sales for both towers that we've launched there.

Okay. Thank you for the color.

My next question is on RCR. Does RCR have annual AUM targets or even GLA infusion targets like the other REITs?

I understand that you already have one announced this year, the ₱10.6 billion consisting of six malls. Do you have targets moving forward for the next 3 years at least?

Actually, we don't have annual targets for RCR, as the infusions from the sponsor would actually depend on the amount of block placements that the sponsor is able to raise, because it's by a property-for-share swap, we need to create elbow room without reaching the minimum public ownership. Just to put things in context on an overall picture of RCR, on an investment EBITDA of RCR of 21 projected to be plus or minus ₱21 billion for the end of 2026, 55% of it is contributed by RCR.

Technically there's about 45%, or ₱9.44 billion, of EBITDA from the sponsor to room. If you look at it in a bigger picture, there's a potential to approximately still double our RCR size.

Okay. Thanks for the color.

That's it for me.

Thanks, Raffy. Next question will be coming from CLSA, Carl?

Carl?

Good morning. Let me just check if you can hear me.

Carl, we can hear you.

Thank you. I'll just clarify a couple of things that Jelline asked earlier.

First on the office segment, it was mentioned that negative rental reversions for the portfolio were 2% to 5%. I'd like to ask if that was broad-based or are there some areas where negative rental reversions are more negative, maybe negative 10%, or maybe there's an area which is particularly strong where you're seeing positive rental reversions of 5%?

Background on the negative rental reversions. Thank you.

Yeah. Hi, Carl.

I'm basing that from the 100,000 square meters of expiring leases this year. We've actually renewed around 67%.

On the rental, it's mainly remained flat. Some declined.

There's also some that increased. Averaging out negative 2% it's negative 2% to negative 5% right now.

We hope to improve by the end of the year with the remaining 30%.

Let me clarify though. There's no particularly weak area or no particularly strong area.

A lot of them are close to flat or just slightly negative, slightly positive. Is that fair?

That's fair.

Okay. On the mall business this time, I'll clarify again the mall SSSG of 1% in 2Q.

In particular, I believe this was 4% in the first quarter, it decelerated to 1% in 2Q. Now, mall revenue grew 5% in 2Q, you're saying SSSG is 1%.

I want to clarify I don't think floor area expanded that much. Should I be thinking in terms of maybe same-mall revenue growth, which is different from same-store sales growth, because I don't know how you can get to 5% mall revenue growth on just 1% same-store sales growth?

Or am I mistaken, because as far as I know, floor area didn't expand that much? Carl,

just to clarify, there are different metrics, no? One is same-mall sales growth, which is really 1%, but in terms of same-mall revenue growth, it's actually 4%.

Okay. Let me clarify that I recall a 4% number also in the first quarter.

Is it correct that both first and second quarter it was 4% same-mall revenue growth?

Yes, that is correct.

Got it. That clarifies a lot.

Thank you. Hold on.

Let me write that down. Now, on the residential segment this time, sales are, well, certainly much weaker than the pre-COVID period.

That's understandable. In terms of what you're seeing recently, is it fair to say that, for the standalone projects, are RFOs selling much better than a project that's not yet complete?

Hi, Carl. That's a fair statement, particularly for the domestic market, where we're seeing stronger demand from end-users.

If you recall, in the previous quarters, we had shared that our RFO packages had been very successful in moving our completed projects, our remaining RFO inventory, and we had sold about ₱6 billion ₱6 billion worth of RFO in the previous quarters. Then as we completed the buildings, the RFO inventory was replenished, and we intend to move the new inventory with our RFO packages as well.

Now for the international market, we're seeing strong demand for our pre-selling inventory. It's a happy balance between the RFO and the pre-selling inventory between the two markets that we are selling to.

Got it. For the international, from the figures you're showing, from what I can tell, domestic market is larger, right, than international market?

Would it be correct that actually most of your sales are RFOs which are on promo?

They're not really on promo per se. If you recall, I had shared also that we are forgoing heavy discounting because we want to protect our margins.

We are instead going for scheme engineering. We have our lease-to-own package.

Then to your first question whether the domestic market is stronger, for this particular quarter, yes, because our international marketing campaigns were largely concentrated back in June, and the bulk of those accounts closed came in July, with some trickling in towards August. We'll see a bigger skew towards international sales for the third quarter.

Okay. Then for the standalone projects again, unsold inventory, in my view, is high relative to let's say trailing 12 months reservation sales.

I'm curious as to what else you could do. Are you just hoping that as units become RFO that they're so much more marketable?

My perspective is unsold inventory looks high, and I'm not sure what's feasible to do to spur sales.

I think we'll have to maintain that balance between our campaigns for the RFO and the pre-selling. We've seen already traction in maintaining that balance.

Hopefully by the end of the year, we'll see even better sales coming in.

Understood. For the JV projects this time, how much is unsold inventory?

Unsold inventory is about ₱10.94 billion.

₱10.94 billion. Now I'll ask about the industrial segment.

For your other big leasing businesses, Mall and Office, EBITDA and EBIT grew slower than revenue. For Logistics and Industrial, EBITDA and EBIT are actually growing faster.

In, again, Mall and Office, I believe it's because of higher utility costs that EBIT and EBITDA are going down or essentially margins are falling. Why are margins expanding in the logistics and industrial facility segment?

For one, there's a penalty amount that we had collected, so that kind of accounts for a significant amount of the EBIT. Then also if we're to compare the models of the logistics business versus the other investment businesses, we are able to maintain our operating expenses at a very low rate, because much of the utility expenses are really passed on to the consumers, the lessees.

Understood. Let me ask as well regarding the penalty, I'm sure this is a penalty from a tenant that pre-terminated.

Does that appear as negative OPEX, or is that also revenue?

That's part of revenue, Carl.

Part of revenue. Okay.

Then finally, again still on industrial, when is the FedEx facility slated for completion?

2028.

2028. Got it.

Thank you. Those are all of my questions.

I know I've asked a lot. Thanks.

Thanks, Carl. Next question will be coming from Danielo Picache of PB Capital.

Danielo, you may ask the question. Danielo?

Can you hear me okay?

Yes, we can hear you.

What's your backout or cancellation [audio cuts

out]? Danielo,

your line is cut off. Danielo?

We can answer first Jelline while...

Okay. Jelline here have a question through the Q&A box.

How much of the RLC-branded unsold inventory is currently RFO?

As shown in the slide...

Shown in the slide is around ₱7 billion, ₱7.7 billion.

I think the numbers shown here are RLC organic inventory. Their joint ventures are not part of this presentation.

Okay. Next question will be coming from Gabe Madrid of UBS.

Later we can go back to Dave.

Hello. Can you hear me?

Yeah. We can hear you.

Hi. Yes, just a quick question on the JV inventory, no.

There's ₱10.94 billion of unsold, but if I check the 2Q sales number, it materially slowed to about ₱350 million. I just want to ask how we should view take-up for these JV projects in the second half, given that there's still a large amount of inventory remaining.

We're confident that it will be stronger in the second half. As shared, we have already turned over Aurelia, and we are slated to turn over also Velaris this August, September, and October.

We'll be seeing a lot more interest in those two particular projects where the concentration of inventory are.

Okay. Thank you.

That's clear. I wanted to ask about the launch pipeline potentially for these JV projects, if there any other upcoming projects in the pipeline outside of those two that you mentioned.

We've

nothing yet to announce for the remainder of the year. We are keeping our ear on the ground to see if there will be opportunities to do so by 2027, second half of 2027, but none yet for now.

To answer Jelline's question on the JV RFO, it's ₱1.3 billion.

Then one last question on my end. I noticed that average cost of debt's about 5.7%.

Maturity is about 1.7 years from now. Does that mean if you were to refinance between now and next year, there could potentially be an uptick in financing costs, which actually did help support the bottom line in the second quarter?

Is that a fair assessment?

As of the moment, we still have enough cash, and hopefully as operating cash flow grows, and if we have other means of sourcing capital, we might pay off some of the debt. Essentially, average cost of debt, well, it depends on what interest rates would be at that point in time.

Okay. Thank you.

That's clear.

Okay. Thanks, Dave.

Another question coming from Francis of BPI. Francis, you may ask the question.

Hello, this is a follow-up on your RCR and RLC GLA. How much of your total GLA for both companies were expiring this year, and any guidance for 2027 expiries also?

Got it. Give me a second.

Scroll a while, Francis.

For RCR, we have around 90 93 sorry, 214,000 expiring this year, which we've renewed around more than 50% already. In 2027, for both malls and offices, we have around 300 a bit more than 300,000 expiring, which we've renewed already 66,000 of that 334.

Sorry. For RCR, how much again were you expiring for 2026?

For 2026, we have expiring of 214, in which we've renewed already 102,000, around 90 93,000 left. In 2027, we have expiring of 334, in which we've already renewed 67,000.

Got it. Thank you.

Thanks, Francis. There's a question in the Q&A box from Danielo.

'For resi, what's the backout/cancellation rates in the second quarter as well? When should mall margins recover?'

First question.

To answer your first question, we report numbers on a net basis.

That's net of already. Okay.

For the second question, 'When should mall margins recover? You mentioned of the margins pressure in the first half 2026, utility-related.

You previously expected the July power contract reset to reduce electricity rates by roughly 10%. Has that reduction materialized, and how much margin recovery should we expect in the second half?'

Yes, the retail electricity supply contract was renewed at a better rate already, we expect the margins to improve, probably 1% or so, yeah.

Okay. Before we go to the raise hand, Jelline, you have a follow-up question.

You may ask the question. Jelline?

Hello. Yes, good morning.

Thanks, Ron. On the unsold inventory, even taking account both JV and RLC-branded, still look a bit high based on trailing pre-sales.

Just wondering how management is thinking about the interplay between margins and cash collection from these unsold inventory. I understand you're expecting them to transition to completed status, and maybe there's an optimism on take-up upon completion, but just wanted to get a sense on how you're thinking about unsold inventory in relation to capital allocation, given that RLC is still in a rare position of deleveraging within the sector.

We will keep our capital allocation strategy focused on our investment projects, and hence we have deferred new launches for residential. Now, we do prefer protecting our margins versus heavy discounting.

Our success in the LTO program for our RFO portfolio has given us confidence to continue with that strategy for our RFO inventory of about ₱7.7 billion. We're confident that we will be able to move that in the coming quarters.

For the pre-selling, same I think, like I shared earlier, that the strategy of going international for that, as the local market is more end-user centric right now. We will continue with that and pivot as market conditions change.

Understood. Are you seeing any pressure on margins apart from price, meaning any trends from construction costs that raises some amber flags for management?

As the Middle East crisis started, we did see price surges in key construction materials, no? Then those have already moderated.

As we had awarded some major packages, we were able to enjoy very good prices. Notwithstanding, we are vigilant in terms of protecting the margins, because I think it's going to be a slippery slope once we adopt a heavy discounting strategy to move the inventory.

All right. Thanks.

Can you remind us about your usage of cash discounts today, where it is currently, and has this changed compared to before, and do you think that this is optimal relative to what your peers are doing?

Our cash discounts remain to be, well, same levels as prior to the Middle East conflict, and it really largely depends on the status of or the progress of the particular project. Let's say if a project is nearing completion, then the cash discount is much lower than a project that is in the early stages of construction.

It can be anywhere from 10% to 20%.

Okay. Thank you so much.

Thanks, Jelline. Last question will be coming from Sean So of ATR AM.

Sean, you may ask the question.

Hi. Good morning.

Thank you for the presentation. Just a quick question from me.

Earlier, you mentioned you expected better second-half sales on the JV side coming from Aurelia and Velaris. Can I ask what the percent sold of Aurelia and Velaris is at this point, for the unsold part for the second half?

Aurelia is already 98% sold.

Velaris

is already 93% sold for Tower 1, for the South Tower. For the North Tower, it's 85% sold.

Okay. That's all for me.

Thank you.

Thanks, Sean. If there's no more question, I'll turn you back again to Miss Mybelle for her closing remarks.

Good morning to all those joined us in this briefing. We are pleased to have reported that Robinsons Land Corporation delivered a strong first half, marked by double-digit growth in revenues and net income, reflecting the continued resilience of our recurring income businesses, sustained recovery of our residential segment, and the growing contribution of our REIT platform.

Our strong cash position provides us with ample flexibility to navigate market volatility and capitalize on emerging opportunities. Our balance sheet allows us to continue paying down debt and giving us agility to deploy more capital to strategic opportunities should the need arise.

This flexibility is made possible by the company's strategic positioning and continued strong operating performance across our diversified portfolio. In line with our capital recycling strategy, we had infused six malls this year.

Given that, we have ample headroom. We plan to further infuse more assets in the second half of this year, subject to favorable market conditions and regulatory approvals.

Our robust investment portfolio continues to deliver resilient recurring income. Our malls have delivered strong positive results, despite the shortened mall operating hours last April and May and a seasonally weak quarter.

All of our investment assets continue to exhibit steady EBITDA and EBIT growth versus same period last year, supported by rental reversions, improving tenant performance, newly operational assets, and operational efficiencies across malls, offices, and hotels. Meanwhile, the development portfolio continues to gain momentum as more projects advance through completion milestones and revenue recognition stages.

We also continue to pursue strategies aimed at strengthening the long-term growth and profitability of the segment. In closing, first half calendar year 2026 was a strong start to the year for Robinsons Land, marked by broad-based growth across our different business segments, continued expansion of our portfolios, and disciplined management of our balance sheet.

This performance provides solid foundation as we continue to pursue opportunities that create sustainable long-term value. Our track record over the years demonstrates our ability to navigate various economic cycles through prudent decision-making, disciplined execution, and a steadfast commitment to sustainability and resilience.

Periods of uncertainty call for vigilance and the right risk mitigation measures, but they also present opportunities we are well-positioned to capture. This balanced approach continues to guide how we manage the business, strengthening our resilience while positioning the group for sustainable growth.

With a strong balance sheet, healthy liquidity, and stable recurring cash flows, we remain confident in RLC's ability to navigate evolving market conditions and to deliver long-term value for our shareholders. Thank you once again for your continued trust, support, and participation.