RCR profits surge 393% on asset expansion

The net income of RL Commercial REIT, Inc. (RCR), the Philippines’ largest real estate investment trust, almost quintupled, rising 393 percent to P3.13 billion in the first nine months of 2022 from P633.79 million in the same period last year.

In a disclosure to the Philippine Stock Exchange, RCR said revenues surged 443 percent to P3.9 billion in the first nine months of 2022 from P719.49 million in the comparative period last year.

RC said the strong growth is on account of contributions from accretive acquisitions this year, and steady earnings from its resilient tenant base composed mostly of BPOs and traditional companies.

Compared to the previous quarter, third quarter revenues grew 13 percent to P160 million with the transfer of Robinsons Cyberscape Gamma to RCR via asset-for-share swap.

Revenues and expenses of Robinsons Cyberscape Gamma beginning April 20, 2022 will accrue to RCR.

Earlier this year, RCR also added Robinsons Cybergate Bacolod to its portfolio of high-quality office assets. Both yield-accretive assets were acquired from its Sponsor, Robinsons Land Corporation (RLC).

RCR maintained its strong financial position with Total Assets of P67.9 billion and Shareholders’ Equity of P66.2 billion. The Company continues to be debt-free.

“The infusion of two accretive assets shows our unrelenting commitment to continuously grow RCR,” said RCR President and CEO Jericho P. Go.

He noted that, “Less than a year since RCR’s landmark listing, we increased Gross Leasable Area by 13 percent from a large base and expanded our foothold to ten cities. We continue to be on the lookout for opportunities to grow the company.”

The RCR Board of Directors approved the declaration of its third quarterly cash dividend this year amounting to P0.0974 per outstanding common share. This declaration brings total dividends as of the third quarter of 2022 to P0.2911 per share.

Based on the listing price of Php6.45 per share, this is equivalent to an annualized dividend yield of approximately 6.04 percent, higher than RCR’s dividend yield projection of 5.96 percent according to its REIT plan.

For the first three quarters of 2022, RCR has declared a total of P2.97 billion in cash dividends, which is more than 90 percent of its distributable income (unaudited).

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Cash dividends will be payable on Nov. 29, 2022 to stockholders on record as of Nov. 22, 2022. RCR’s dividend policy is to distribute at least 90 percent of its distributable income, in compliance with the REIT Law.

Following the acquisition of two assets this year, RCR’s portfolio grew by 13 percent to a total gross leasable area (GLA) of over 480,000 square meters (sqm) across 16 prime office assets.

RCR entered the PSE in September 2021 with an asset size of 425,000 sqm. The infusion of an additional 55,000 sqm of GLA in less than a year since IPO is a testament to RCR’s commitment to fulfill its plans and continuously grow the Company for its shareholders.

With the acquisition of Cybergate Bacolod, RCR expanded its geographical reach from 9 key cities to 10. It now has presence in Quezon City, Pasig City (Ortigas Center), Mandaluyong City, Makati City, Taguig City (BGC), Tarlac City, Naga City, Cebu City, Bacolod City, and Davao City.

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

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