RLC allots P3 billion for buyback program

MANILA, Philippines — Robinsons Land Corp. (RLC), the listed property developer of the Gokongwei Group, is alloting P3 billion to buy back its shares amid the rosy prospects of the company following the successful listing of its real estate investment trust (REIT), RL Commercial REIT (RCR).

“The board unanimously approved the stock buyback program. The recent REIT listing of RCR and its subsequent strong performance, crystalizes the value of RLC,” said Frederick Go, president and CEO of RLC.

RLC’s current market capitalization stood at P91.7 billion, based on its closing price of P18.80 per share on Friday. The company has a strong balance sheet with a total asset of P214 billion and a low debt-to-equity ratio of 39 percent as of June 30.

The company raised P23.5 billion from the recent initial public offering of RCR, which it plans to use in its various businesses in the next 11 months.

RCR declared its maiden cash dividend last week, a month after its market debut last Sept. 14. It declared its first cash dividend payout amounting to P0.062 per outstanding common share.

Based on the listing price of P6.45 per share, the dividend payout is equivalent to an annualized yield of 5.77 percent, which is higher than RCR’s dividend yield projection of 5.57 percent for 2021 according to its REIT plan.

For 2022, RCR is projecting a dividend yield of 5.96 percent based on a price of P6.45 per share. The stock closed at P7.21 last Friday.

The dividends will come from RCR’s unrestricted retained earnings from two months of operations starting Aug. 2 to Sept 30 and will be payable on Nov. 25 to stockholders on record as of Nov. 19.

RCR president and CEO Jericho Go said the dividend payout, which provides a higher yield than expected, affirms the strength of the company’s portfolio, which consists of 14 office buildings registered with the Philippine Economic Zone Authority and located in Central Business Districts such as in Makati, BGC, Ortigas, Quezon City and Mandaluyong and in the key cities of Naga, Tarlac, Cebu, and Davao.

The company’s portfolio comprises 425,315 square meters of gross leasable area (GLA), valued at P73.9 billion.

RCR aims to grow its portfolio with regular asset infusions of one to two assets per year.

It plans to inject 40,000 to 100,000 sqm of GLA within the next 18 months.