RL Commercial REIT Inc. (RCR), the real estate investment trust (REIT) backed by Gokongwei-led Robinsons Land Corp. (RLC), is targeting a doubling of its property portfolio to more than two million square meters (sqm), though management indicates the next phase of asset injections will be paused until global market volatility subsides.

Jericho P. Go, RCR president and chief executive officer (CEO), said in a recent interview that heightened market instability fueled by geopolitical tensions in the Middle East has pressured asset and share valuations.

“Consequently, the current environment is not optimal for RLC to transfer additional properties into the REIT in exchange for shares,” Go said. Despite the near-term caution, he added that the long-term growth trajectory remains intact, noting that the company can easily double its current footprint of 1.15 million sqm given that its sponsor still holds 1.35 million sqm of prime office and retail space.

The untapped leasing portfolio held by RLC includes 250,000 sqm of office space and 1.1 million sqm of shopping malls across the Philippines. Analysts at COL Financial Group Inc. noted that RCR maintains significant flexibility to pursue these infusions, as its public float of 44.18 percent sits well above the 33.3-percent regulatory minimum.

According to COL Financial, the REIT has the headroom to execute property-for-share swaps involving up to 6.39 billion common shares. At RCR’s current share price of ₱6.69, such a move would be valued at approximately ₱42.7 billion. While management previously signaled plans for multiple infusion tranches this year, specific timelines remain undisclosed.

Even as the broader equities market contends with fluctuations in global oil prices, Go described RCR’s core office leasing business as resilient. The company maintains a 96-percent occupancy rate and a blended weighted average lease expiry (WALE) of roughly four years, providing a locked-in revenue stream.

The retail portion of the portfolio mirrors this stability, anchored by Robinsons Retail Holdings Inc. (RRHI) stores that operate under long-term lease agreements. Go added that mall revenues are protected against inflationary pressures because tenants pay a base minimum rent supplemented by a percentage of their sales.

RLC’s uninfused office assets also carry a WALE of approximately four years, though their occupancy rate stands lower at 88 percent as several newer buildings continue their initial leasing phases.

This follows a major expansion last year when the Securities and Exchange Commission (SEC) approved the ₱30.67-billion infusion of nine malls into RCR. That transaction, part of a broader strategy to triple the REIT’s valuation to ₱300 billion within three years, was executed via a property-for-share swap at ₱8 per share. The infusion added 324,108 sqm to RCR’s holdings, bringing its total portfolio to 38 assets, including 21 malls and 17 offices.