RCR to expand gross leasable area

Iris Gonzales - The Philippine Star

MANILA, Philippines — RL Commercial REIT Inc. (RCR), the listed real estate investment trust (REIT) of the Gokongwei Group is looking to add up to 100,000 square meters of gross leasable area (GLA) to its portfolio within the next 18 months.

This will bring its portfolio size to at least 525,315 sqm.

RCR’s initial portfolio is at 425,315 sqm of GLA composed of 14 commercial assets valued at P73.9 billion.

These assets are in nine cities across Luzon, Visayas, and Mindanao, including the major central businesss districts of Makati, BGC, Mandaluyong, Ortigas, and Quezon City.

Moving forward, RCR will continue to look for opportunities to acquire assets from third parties, subject to the fund manager’s recommendations, market conditions, the requirements of RCR’s business, and the approval of the relevant regulatory bodies.

Robinsons Land’s potential pipeline for infusion to RCR is around 422,000 sqm over time.

The potential expansions are geared toward boosting its dividend yield.

As stated in the prospectus, RCR’s dividend yield forecast for 2022 is at 5.96 percent. This was calculated based on a 90 percent payout of the projected distributable income for 2022.

On Tuesday, RCR’s stock closed at an all-time high of P7.22 per share, 11.94 percent higher than its initial public offering price of P6.45 per share. The company had its successful and timely debut less than two months ago.

Compared to its previous close, RCR’s price is up 0.23 points or 3.29 percent, surpassing the benchmark Philippine Stock Exchange index, which rose by 0.73 percent that day.

RCR is touted as the Philippines’ largest 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.

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