RLC infusion boosts REIT’s profit

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GOKONGWEI-LED RL Commercial REIT Inc. (RCR) on Wednesday reported a 41-percent increase in January to September 2024 revenues to P5.74 billion from P4 billion a year ago, mainly due to a multi-asset infusion valued at P33.92 billion from its sponsor, Robinsons Land Corp. (RLC).

“The 13 multi-asset infusion valued at P33.92 billion has been the largest single infusion done by any Philippine REIT company so far,” RCR President and Chief Executive Officer Jericho Go said.

“The injection of mall assets, complemented by two office assets, elevated RCR’s position to become a multi-asset REIT,” he added.

The infusion strengthened RCR’s financial position, with total assets now amounting to P103.2 billion. Shareholders’ equity also rose to P98.69 billion, and the company said it remained debt-free.

The variable rent structure of RCR’s malls bodes potential upside to its current revenue, Go said, adding that the company had doubled its gross leasable area (GLA) and expanded its presence to 18 areas from just nine locations when it went public three years ago.

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“This is a testament to our commitment to grow the company,” he added.

For the third quarter, RCR declared a cash dividend of P0.1009 per outstanding share. Shareholders will also receive an additional P0.026 per outstanding share as a special dividend approved by the company’s board.

For the past three quarters of this year, RCR has so far paid total dividends of P4.12 billion to its shareholders.

In a stock exchange filing, RCR said that the third-quarter dividend would be payable on Nov. 29 to shareholders on record as of Nov. 20. This was said to be part of a dividend policy to distribute at least 90 percent of its distributable income in compliance with the REIT Law.

As of end-September 2024, RCR’s GLA had increased to P828,000 square meters (sqm), or 95 percent more than when it was listed in 2021.

Post asset infusion, its sponsor, RLC, still had more than 1.3 million sqm of mall GLA, more than 250,000 sqm of office GLA, around 280,000 sqm of logistics GLA and approximately 4,000-room keys that may be infused into RCR in the future.

RCR said it was continuing to look for potential assets for possible acquisition from third parties.

The company’s shares on Wednesday rose 4 centavos, or 0.67 percent, to close at P5.99 apiece, while those of its sponsor, Robinsons Land, were unchanged at P15.50 each.

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