RLC REIT declares P915-M dividend

RL Commercial REIT, Inc. (RCR), the country’s largest Real Estate Investment Trust (REIT), declared a cash dividend amounting to P915.3 million—its second cash dividend.

In a disclosure to the Philippine Stock Exchange, RCR said its Board of Directors approved the declaration of cash dividends for the fourth quarter of 2021 in the amount of P0.092 per outstanding common share, bringing its total dividends to P0.154 per share.

Based on the IPO price, this is equivalent to an annualized yield of 5.73 percent, higher than RCR’s dividend yield projection of 5.57 percent for 2021 according to its REIT plan.

The cash dividends will be payable on Feb. 28, 2022 to stockholders on record as of Feb. 18, 2022. RCR’s total dividend pay-out in 2021 is equivalent to 91.56 percent of its distributable income, higher than the minimum mandated level of 90 percent.

*RL Commercial REIT President Jericho Go*

“Our declaration of quarterly dividends is a fulfillment of our commitment to investors based on our REIT plan,” said RCR President and Chief Executive Officer Jericho Go.

He added that, “This dividend payout, which provides a higher yield than expected, affirms the strength of our portfolio. We are grateful for the continued support, trust and confidence of our shareholders.”

RCR’s portfolio consists of 14 high quality office buildings registered with the Philippine Economic Zone Authority.

These assets are located in 9 key cities and Central Business Districts of Makati, BGC, Ortigas, Quezon City, Mandaluyong, Naga, Tarlac, Cebu, and Davao with a total gross leasable area (GLA) of 425,315 sqm. RCR has the widest geographical reach among listed REITs in the Philippines.

Despite the recent tightening of quarantine measures, RCR’s 14 assets maintain high occupancy rates with a weighted average lease expiry (WALE) of 3.9 years as of end December 2021.

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The article was originally published in Manila Bulletin and written by James A. Loyola.