By Keren Concepcion G. Valmonte, Reporter
RL Commercial REIT, Inc. (RCR) inched up by one centavo on its first day at the Philippine Stock Exchange (PSE), closing the day at P6.46 each from its listing price of P6.45.
RCR is the real estate investment trust (REIT) sponsored by Robinsons Land, Corp. (RLC). It is the fourth and the “largest” REIT listing at the local bourse so far, breaking records upon listing.
Its initial public offering (IPO) raised a total of P23.5 billion, which RLC plans to use to build more projects. RCR’s market capitalization stands at P64.2 billion, said to be the highest among REITs in the country.
“The success of our IPO is an affirmation of RCR as an attractive investment and of REITs as a new facet of the Philippines’ financial landscape,” RCR Chairman Frederick D. Go said during RCR’s listing ceremony.
RCR was among the most traded stocks on Tuesday at P499.7 million with 77.28 million issues traded.
On Tuesday, value turnover at the PSE surged by over six times to P31.17 billion with 4.71 billion shares switching hands from the P5 billion with 1.75 shares traded on Monday.
“Trading activity was focused on the maiden voyage of RCR, which finished slightly up to end its first trading session,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
RCR opened with a gap up from its P6.45 offer price and traded for as much as P6.55 each.
“But [it] immediately saw profit taking activity take place in the open market, causing the stock to dip to as low as P6.44, but eventually moving sideways above the P6.46 area for the most part of the day. Eventually, the stock closed at this price and ended up being one of the most actively traded issues today,” Timson Securities, Inc. Trader Darren T. Pangan said in a separate Viber message.
RCR has branded itself as the most geographically diverse REIT, with over 94% of its initial portfolio spread in the business districts of Makati, Bonifacio Global City, Ortigas as well as in Mandaluyong, Quezon City, Metro Cebu, Metro Davao, Naga, and Tarlac.
It also has the largest portfolio valuation at P73.9 billion as of end-June, according to Santos Knight Frank.
RCR’s initial portfolio spans 425,315 square meters (sq.m.) of gross leasable area (GLA), which makes its asset size the largest. Its assets also have land leases that last for as long as 99 years.
“Its leasable area is expected to grow through the full support of RLC, the majority owner and sponsor of RCR,” RCR said in a statement on Tuesday.
Robinsons Land is expected to infuse one or two assets every year into its REIT unit. Within the next 18 months, it is planning to inject 40,000 to 100,000 sq.m. into RCR.
In July, RCR and RLC entered into a memorandum of agreement for the potential acquisition of Cyberscape Gamma and/or Robinsons Cybergate Center 1. The two assets have a combined GLA of 72,100 sq.m. equal to around 17% of RCR’s initial portfolio.
RLC also has existing office assets, business process outsourcing (BPO) spaces in various commercial centers, and other projects under construction, which it may inject into the REIT subject to market conditions, regulatory approval, among others.
“Overall, RLC’s potential pipeline for infusion to RCR amounts to a total GLA of approximately 422,000 sq.m. over time,” RCR said.
Mr. Go said RLC will be “keenly observing the market,” especially the BPO industry. He also expressed confidence in the office market.
RCR Treasurer Kerwin Max S. Tan said the REIT listing “crystalizes the value of RLC” and it also allows RLC to recycle capital to develop more projects in the future.
“This RCR listing just contains 65% of our office portfolio, then what more if we include our malls, our other offices under RLC, our residential, our land, and our destination estates? It just shows how valuable RLC is,” said Mr. Tan, who is also the chief financial officer of RLC.