ROBINSONS LAND CORPORATION ("Your reliable investment real estates in the Philippines")JG Summit, through its 83.75% ownership in Robinsons Land Corporation, is positioning to become the country's major property company. It operates in four core businesses: shopping malls, office buildings, hotels and housing. The Company is the largest domestic hotel owner and operator, and one of the three largest owners and operators of retail shopping space in the country.

Real estate in the country in fiscal year 1999 continued to undergo one of the most challenging periods in history. Fortunately for RLC, its diversity and exposure in four core sectors of the industry enabled the Company to manage the balance between growth and consolidation. In fiscal year 1999, RLC posted consolidated gross revenues of P2.61 billion, a 6.8% increase from the previous year's P2.45 billion. Total assets stood at P12.79 billion, a 9.07% increase from last year's P11.72 billion.

The Company's Commercial Centers Division accounted for P1.09 billion of the real estate revenues, a 25.3% increase over last year's P867.6 million. Rental improvements from the Company's existing malls, specially the Robinsons Place-Manila mall, continue to steadily push recurring revenue. Moreover the swift take-up of leasable spaces in the newest mall, Robinsons Place-Imus, as well as the improved performance of Robinsons Place-Bacolod contributed significantly to the recorded revenue.

Hotel operations of the Company and its subsidiary, Manila Midtown Hotels & Land Corporation, reported revenues of P804.9 million despite a weak tourism industry. Focusing more efforts on aggressive marketing strategies, the Hotel Division managed to improve its market share despite the glut in room supply and sluggish demand. The Group's two biggest hotels, Manila Galleria Suites and the Manila Midtown Hotel, continued to perform well relative to other hotels in their respective classes. In 1999, the average occupancy rate of Manila Galleria Suites was 70%, surpassing the industry average of 65% for deluxe hotels, while that of Manila Midtown Hotel stood at 54%, slightly better than the industry average of 52% for first-class hotels.

RLC's High-Rise Buildings Division finished the period with realized gross revenue of P510.0 million. The Division's most popular project today is the Robinson's Place Residences in Manila City. Favorable market reception to the project was maintained in the past year, prompting the opening of Tower Two for pre-selling at the beginning of this year. The outlook for office space, however, is not as encouraging due to weak demand from the business sector. On the positive front, the Robinsons-PCIBank Tower remains the preferred choice in the Ortigas Central Business District, commanding a premium rental rate in the locality. We are currently intensifying our leasing efforts on the 12,000 square meters of space the Company owns in the building.

The Company's Housing and Land Development Division, through its two housing subsidiaries Robinsons Homes Inc. and Trion Homes Development Corporation, reported realized gross revenues of P210.8 million as against the previous year's P329.7 million. Last year, Robinsons Homes Inc. received the citation of "Outstanding Developer of the Year" from the Chamber of Real Estate and Builders Association (CREBA) for our sustained support and valuable contribution to the government's national shelter program despite the economic crisis and market uncertainty. We now have several development projects receiving good market response across the country with San Jose Heights in Antipolo City, Vineyard Phases 1 and 2 in Dasmariñas, Cavite, Southsquare Village in General Trias, Cavite, and Robinsons Highlands in Davao City.

RLC is currently building four new shopping malls in Los Baños, Novaliches, Iloilo City and Pasig City, expanding the Manila mall, and redeveloping the Cebu Center, which will bring our Group's total commercial building area from over 500,000 sqm to about 800,000 sqm. In fiscal year2000, the Company expects to complete the Los Baños, Manila expansion, and Cebu redevelopment, while the three other new malls are scheduled for completion in 2001.

In anticipation of an upturn in the hospitality industry, RLC will soon begin the superstructure construction of the 260-room hotel at the corner of Ortigas and ADB Avenues. On the top 13 floors of the new hotel building, an independent component, the Galleria Regency, will house upscale residential condominium units for sale.