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Thursday, April 18, 2024

Acquisitions plans boost shares of RL Commercial REIT

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Acquisition plans boosted the shares of RL Commercial REIT Inc. to close at an all-time high of P7.22 on Wednesday, up nearly 12 percent from its debut price of P6.45 apiece in August.

RCR said in a statement it was looking to acquire more assets over the next 18 months to accelerate growth and boost its stock performance.

To bolster its portfolio of assets, RCR said it was eyeing the acquisition of 40,000 square meters to 100,000 sq. m. of gross leasable area its parent firm Robinsons Land Corp. over the near term.

RCR has access to RLC’s business process outsourcing spaces located within its various commercial centers and projects that are in various stages of construction.

From its office business portfolio alone, RLC’s potential pipeline for infusion to RCR would reach a GLA of 422,000 sq. m. over time. RCR is also on the lookout for opportunities to acquire assets from third parties.

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All potential infusions are subject to the fund manager’s recommendations, market conditions, the requirements of RCR’s business and the approval of the relevant regulatory bodies.

RCR is the Philippines’ largest real estate investment trust 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.

RCR has an initial portfolio of 14 high-quality commercial assets valued at P73.9 billion, spanning across 425,315 sq. m.

These assets are strategically located in nine cities, including the major central business districts of Makati, BGC, Mandaluyong, Ortigas and Quezon City.

RCR said the potential expansions are geared towards boosting its dividend yield to its target 5.96 percent in 2022. The dividend yield was calculated based on a 90-percent payout of the projected distributable income for 2022. RCR will declare dividends quarterly.

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