RL Commercial REIT eyes more assets

Iris Gonzales – The Philippine Star

January 3, 2022 | 12:00am


MANILA, Philippines — RL Commercial REIT (RCR), the real estate investment trust (REIT) of Gokongwei-led Robinsons Land Corp. (RLC), continues to look for opportunities to acquire assets.

In its three-year investment plan, RCR said its predominant focus is on Grade A commercial assets situated in prime central business districts in Metro Manila as well as major regional commercial hubs.

The principal strategy of RCR is to invest in a diversified portfolio of income-producing commercial real estate assets, leased primarily for office purposes.

Toward this end, RCR’s fund manager and property manager, in collaboration with the company’s management team will ensure the smooth operation of the portfolio and pursue opportunities for both organic and inorganic growth to improve shareholder return.

Inorganic growth opportunities will come from either improvement of existing assets to command higher rental rates or through the dividend yield accretive acquisitions of high-quality commercial properties that complement the portfolio.

“The fund manager will also actively monitor the market for opportunities to acquire high quality commercial properties that meet the investment criteria of RCR, including being dividend yield accretive, and complementary to the strategy of the company,” RCR said.

To finance its asset acquisitions, RCR may do equity and debt capital raising transactions, bank loans and tax-free-exchange.

RCR’s potential expansion is geared toward boosting the company’s dividend yield.

The dividend yield forecast for 2022 at the initial public offering price of P6.45 per share is at 5.96 percent, one of the highest among existing REITs.

The dividend yield was calculated based on a payout of at least 90 percent of the projected distributable income for 2022.

RCR is the fourth REIT which listed on the Philippine Stock Exchange last September.

At the time of listing, it was the largest in IPO size, market cap and property valuation and the biggest in asset size with 425,000 square meters of high-quality commercial spaces.

Its initial portfolio consists of 14 high quality assets including Robinsons Cybergate Center 2 and Robinsons Cybergate Center 3 in Mandaluyong City.

RCR also boasts of having the longest land lease tenure of up to 99 years for most properties which provide long term sustainability and predictability to RCR.

It remains to have the widest in geographical coverage with its presence in various key cities and CBDs such as in Makati, Bonifacio Global City, Ortigas, Quezon City, Metro Cebu, Metro Davao, Naga and Tarlac.

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