RL Commercial REIT Inc. (RCR), the real estate investment trust arm of Robinsons Land Corp. (RLC), is likely to pay out higher dividends over the next two years with the infusion of nine new malls into its portfolio, DragonFi Securities Inc. said in a report.
DragonFi reaffirmed its “buy” rating on RL Commercial and upgraded its target price by 12.95 percent to P7.91 per share, citing dividend accretion from the new assets.
“We forecast RCR’s 2025F (forecast) DPS (dividend per share) to grow by 3.51 percent to P0.4411, supported by five months of income contribution from the nine new malls,” the brokerage said.
“By 2026F, we expect DPS to rise by a faster 4.94 percent to P0.4629, driven by a full-year contribution of the nine malls,” it added.
The property infusion, valued at P30.68 billion, will involve a property-for-share swap with sponsor Robinsons Land, adding 324,108 square meters of gross leasable area (GLA) to the REIT in exchange for 3.83 billion shares priced at P8 each.
The infusion will expand RL Commercial’s portfolio to 38 investment properties — 21 malls and 17 offices — and increase its total GLA by 39.15 percent to 1.15 million sqm, with malls accounting for 53.22 percent and offices making up 46.78 percent.
DragonFi noted the diversification benefits of the deal, pointing out that the nine malls are located in key cities nationwide that have a high average occupancy rate of 95 percent and a weighted average lease expiry of 5.35 years.
“Post-infusion, we expect RCR’s revenue mix to become more balanced between malls and offices,” it said.
By 2026, it said malls were expected to contribute over 50 percent of the REIT’s total revenue, reducing its dependence on the office segment and insulating it from sector-specific risks.
The brokerage also noted that only 43.02 percent of Robinsons Land’s leasable assets have been infused into the REIT unit so far.
“Management’s target of doubling RCR’s asset base to P300 billion in three years appears achievable given this pipeline,” DragonFi said, citing the possibility of future infusions that may include office, mall, industrial, and even hotel assets.
RL Commercial’s adjusted funds from operations (AFFO) are forecast to rise by 35.51 percent to P7.85 billion in 2025 and by a further 18.50 percent to P9.30 billion in 2026 as the new malls contribute fully.
This would translate to an AFFO per share growth of 4.84 percent in 2025 and 4.94 percent in 2026, supporting sustained dividend increases, DragonFi said.
The firm will also benefit from variable rent as mall foot traffic recovers.
“Management highlights upside from variable rent — a revenue component tied to tenant sales,” the report added, noting that post-pandemic consumer behavior is favoring physical retail, which boosts the REIT’s rental income potential.
The asset infusion will extend it presence to 25 cities nationwide, with DragonFi highlighting that the expansion strategy positions the REIT for sustained growth, stable dividends, and strong investor returns.
RL Commercial shares closed at P7.80 each, up by 4.56 percent, while those of Robinsons Land ended at P14.50 each, firmer by 2.11 percent, on Friday.
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