The share price of RL Commercial REIT, Inc. (RCR) hit at an all-time high, closing at P7.22 apiece on November 2 and 3, 2021.
The record price is 11.94 percent higher than its initial public offering (IPO) price of P6.45 per share. The company market its successful debut at the Philippine Stock Exchange less than two months ago.
Sponsored by Robinsons Land Corporation (RLC), RCR is the Philippines’ largest real estate investment trust (REIT) in terms of IPO size, market capitalization, and property valuation.
It also has the biggest portfolio and asset size, the widest geographical coverage, and the longest land lease tenure among all Philippine REITs.
The company is looking to acquire more assets to accelerate growth and further boost its stock performance.
RCR has an initial portfolio of 14 high-quality commercial assets valued at Php73.9 billion, spanning across 425,315 square meters of gross leasable area.
These assets are strategically located in 9 cities across Luzon, Visayas, and Mindanao, including the major Central Business Districts of Makati, BGC, Mandaluyong, Ortigas, and Quezon City.
To bolster its portfolio of assets, RCR is eyeing the potential future acquisition of 40,000 sqm to 100,000 sqm of GLA from RLC’s existing office developments within the next eighteen (18) months.
In addition to this, RCR has access to its Sponsor’s business process outsourcing (BPO) spaces located within its various commercial centers, as well as projects that are in various stages of construction.
From its office business portfolio alone, RLC’s potential pipeline for infusion to RCR amounts to a total GLA of approximately 422,000 sqm over time.
Moreover, RCR continues to look for opportunities to acquire assets from third parties. All potential infusions are subject to the fund manager’s recommendations, market conditions, the requirements of RCR’s business, and the approval of the relevant regulatory bodies.
RCR’s potential expansions are geared towards boosting its dividend yield. As stated in the Prospectus, RCR’s dividend yield forecast for 2022 is at 5.96 percent, one of the highest among REITs.
The dividend yield was calculated based on a 90 percent payout of the projected distributable income for 2022. RCR will declare dividends quarterly.
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Article was originally published in Manila Bulletin and written by James A. Loyola.
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