When RL Commercial REIT, Inc. (RCR) entered the market in September 2021, the real estate sector was grappling with the aftermath of COVID-19. The pandemic shook investor confidence, and demand for office spaces declined. Yet, RCR defied expectations.
Incorporated in 1988 as Robinsons Realty and Management Corporation, the company was renamed as RL Commercial REIT, Inc. before going public in 2021. RCR’s public offering raised approximately P23.5 billion, the largest REIT initial public offering (IPO) in the Philippines by far.
At the time of its listing, RCR’s portfolio includes 14 prime office assets. These include the 1. Tera and 2. Exxa-Zeta Towers in Quezon City, 3. Robinsons Equitable Tower, 4. Robinsons Cyberscape Alpha, and 5. Robinsons Cyberscape Beta in Pasig City, 6. Robinsons Cybergate Center 2 and 7. Robinsons Cybergate Center 3 in Mandaluyong City, 8. Robinsons Summit Center in Makati City, and 9. Cyber Sigma in Taguig City. The other office properties were 10. Robinsons Luisita BTS 1 in Tarlac City, 11. Robinsons Cybergate Naga in Naga City, 12. Robinsons Galleria Cebu and 13. Robinsons Cybergate Cebu in Cebu City, and 14. Robinsons Cybergate Delta 1 in Davao City.
Since then, it has significantly expanded its size and reach. In 2022, it added two properties in less than 18 months (ahead of its commitment per REIT Plan), followed by a major infusion in 2024 when it infused 13 additional properties.
RCR diversified beyond office spaces. Initially focused on office spaces, the company’s portfolio now includes 17 office properties and 12 malls across 18 key locations in the Philippines. This expansion brought its total assets to 29, with a strong occupancy rate of 96% as of December 2024.
Stability and sustainability
The growth trajectory of RCR hinges on an Investment Criteria. In determining future investment to expand RCR’s portfolio, the asset to be acquired or infused has to be yield-accretive, has three-year profitability history, has stable occupancy, has to be in a key location and accessible at the same time, has to have a healthy tenant mix (for offices, BPOs are key while for malls, retail affiliates and strong and expanding retail concepts are important), and to extent available, PEZA Registration is an advantage. Such factors ensure that any new asset infusion strengthens the company’s financial standing and enhances value for the shareholders.
RCR executed a landmark asset infusion in 2024. The 13 multi-asset infusion valued at P33.92 billion has been the largest single infusion done by any Philippine REIT company so far. The injection of the mall assets positioned RCR to become a multi-asset class REIT not only limited to offices. The variable rent structure of the malls signifies a potential upside to its current revenue. The malls are considered to be one of the stable real estate classes backed by high consumer spending.
RCR’s strengths also include stable occupancy rates. Both office segment and mall segment had steady occupancy rate of 96% as of December 2024. RCR’s tenant mix is primarily BPO for office segment and Retail Affiliates for its mall segment.
Strong investment option
RCR continues to establish itself as a stable and lucrative investment vehicle with consistently high dividend yields, a growing asset portfolio, and a track record of share price appreciation.
Investing in RCR gives opportunities for those looking for better returns than conventional money market instruments. Typically, a money market investment offers a return of around 6% per year. In contrast, RCR provides dividend yield of approximately 6.67% to 7.10%, making it a more profitable alternative. Dividend yield assumes a share price of P6.00 and following the total dividends per share declared by RCR for CY2024 totaling to P0.4001 without special cash dividends and P0.4261 including the P0.0260 special cash dividends. For instance, an investor who places P100,000 in a money market fund might earn P6,000 annually. Investing the same amount in RCR yields approximately P6,670 to P7,100 in dividends. RCR’s share price has also shown upward momentum, increasing from P5.85 (as of Dec. 27, 2024) to P6.20 (as of Feb. 28, 2025).
If one is an investor of RCR since it went public in 2021, the change in share price, as well as the total dividend earnings to date, results in an overall investment growth of more than 15% — a significantly higher return compared to traditional fixed-income instruments.
Ensuring consistent dividend yields and long-term growth for investors, RCR combines rental revenue, asset appreciation, and sustainability for a winning investment strategy.
Continued growth
In just three years, the company has doubled its total gross leasable area (GLA) from approximately 425,000 square meters (sq.m.) to approximately 828,000 sq.m. This expansion ensures continued profitability for investors, aligning with RCR’s strategy to increase revenue-generating assets.
RCR’s market capitalization is around P97 billion as of Feb. 28, 2025, higher than the P64-billion market capitalization when it listed last Sept. 14, 2021.
RCR is continuously to be on the lookout for potential assets for acquisition. RCR’s Sponsor, RLC alone, currently has more than 1.3 million sq.m. of mall GLA, more than 250 thousand sq.m. office GLA, almost 300 thousand sq.m. of logistics and industrial facilities GLA, and approximately 4 thousand hotel room keys remaining for infusion. Aside from these, RCR is also on the watch for assets from third parties.
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