RL Commercial REIT, Inc. (RCR), the real estate investment trust of Robinsons Land Corporation, successfully listed its shares at the Philippine Stock Exchange with its share price holding steady amid a weaker market.
RCR makes history as the Philippines’ largest publicly-listed REIT with a market capitalization of P64.2 billion. It closed at P6.46 per share from its offering price of P6.45 apiece.
“Today’s listing of RLC REIT increases the total market capitalization of REIT companies listed in the PSE to P171.3 billion from P107.1 billion,” said SEC Chairperson Emilio B. Aquino.
He added that, “It represents 0.91 percentof the total stock market capitalization of the PSE, a big jump of 34 basis points from the 0.57 percent level accounted for by the three previous REIT listings.”
PSE President Ramon S. Monzon noted that, “...institutional investors, both local and foreign, heavily supported RCR’s IPO. Local small investors, or LSIs, from 52 provinces and 14 countries likewise joined the RCR investment bandwagon.”
“In fact, for the first time ever in PSE’s history, a local small investor from Iraq invested in an IPO via PSE’s Electronic Allocation System or PSE EASy,” he said.
Monzon said “This clearly indicates the trust and confidence of investors in the property development track record, professional management, and vision of RCR’s sponsor, Robinson’s Land, and in the ability of RCR to sustain its high dividend yield, estimated at 5.57 percent in 2021 and 5.96 percent in 2022.”
RCR also sets the record as having the largest portfolio valuation at P73.9 billion, and the biggest asset size with a gross leasable area (GLA) of 425,315 square meters.
“We are extremely grateful for the overwhelming response of the capital markets to our landmark offering. We would like to thank the investing public for their continued trust and support to the Robinsons Land brand,” said RLC President and RCR Chairman Frederick Go.
He noted that, “We appreciate how our reputation and track record over the years have resulted in this expression of confidence in RCR’s IPO.” RCR also boasts of having the widest reach with its extensive geographical coverage. Over 94 percent of its initial portfolio is spread across the central business districts (CBD) of Makati, BGC and Ortigas.
Others are located in key cities of Metro Manila such as Mandaluyong and Quezon City, while the rest are in high-growth commercial hubs in Metro Cebu, Metro Davao, Naga, and Tarlac.
Its leasable area is expected to grow through the full support of RLC, the majority owner and Sponsor of RCR. RLC is prepared to infuse one to two assets per year into the REIT, with concrete plans to inject 40,000 to 100,000 square meters of GLA within the next 18 months.
On top of this, RLC has existing office assets, and projects that are in various stages of construction. Overall, RLC’s potential pipeline for infusions to RCR amounts to a total GLA of approximately 422,000 sqm over time.
Many of RCR’s assets have land leases for as long as 99 years, bringing the portfolio to an 89-year average land lease. This cements RCR’s position as the REIT with the longest land lease tenure.