RCR obtains highest issuer credit rating

Iris Gonzales - The Philippine Star

MANILA, Philippines — RL Commercial REIT Inc. (RCR), the newly listed real estate investment trust (REIT) of Robinsons Land Corp, has obtained the highest issuer credit rating from local watcher Philippine Rating Services Corp. (PhilRatings).

RCR was given a PRS Aaa rating, which  reflects its very strong capacity to meet its financial commitments relative to that of other Philippine corporates.

The rating includes a stable outlook  which means it is expected to remain unchanged in the next 12 months.

The investment-grade issuer credit rating allows the company  to increase its leverage limit to 70 percent from 35 percent of the total value of its deposited property according to the REIT Implementing Rules and Regulations (IRR).

This gives RCR greater financial flexibility to support its organic and inorganic growth for long-term sustainability.

The company has  an initial portfolio of 14 Philippine Economic Zone Authority (PEZA)-accredited properties and high-quality tenant base.

RCR, which made its stock market debut last Tuesday, is the largest Philippine REIT to date, in terms of market capitalization at P64.2 billion, property valuation of P73.9 billion, asset size of 425,315 square meters in gross leasable area, and initial public offering (IPO) size of P23.5 billion.

Its IPO  was “overwhelmingly oversubscribed,” officials said.

The company also has the widest geographical coverage, covering nine locations in Luzon, Visayas, and Mindanao, and the longest average land lease tenure of 89 years.

RCR commits to uphold RLC’s established reputation and excellent track record. It seeks to embody RLC’s principles of good corporate governance to ensure sustained shared success with all its stakeholders.

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