RL Commercial REIT, Inc. (RCR), a real estate investment trust (REIT) company backed by the Gokongwei Group's Robinsons Land Corporation (RLC), is moving forward with a proposed property-for-share swap consisting of 13 commercial assets, increasing RCR’s total gross leasable area (GLA) by an additional 347,329 sqm. A REIT is a company that owns, operates, or finances income-generating real estate, allowing investors to earn a share of the income produced through commercial properties without having to buy, manage, or finance them directly.
The proposed property-for-share swap—where RLC will subscribe to 4,987,641,178 primary common shares of RCR at a price of PHP6.80 per share, equivalent to a total valuation of PHP33,915,960,000—was approved during a special RCR stockholders’ meeting on July 15, 2024. The shareholders likewise approved the execution of the Deed of Assignment on July 16, 2024, with the accrual of revenues to RCR starting April 1, 2024. The company aims to secure all regulatory approvals for the property-for-share swap within the year.
The property-for-share swap comprises 11 malls (Robinsons Novaliches, Robinsons Cainta, Robinsons Luisita, Robinsons Cabanatuan, Robinsons Lipa, Robinsons Sta. Rosa, Robinsons Imus, Robinsons Los Baños, Robinsons Palawan, Robinsons Ormoc, and Cybergate Davao), totaling 278,526 sqm. of leasable space, as well as two office assets totaling 68,803 sqm. of leasable space, namely, Giga Tower in the Bridgetowne Destination Estate, Quezon City, and Cybergate Delta 2 in Davao City. In total, the swap increases RCR’s gross leasable area from 480,479 sqm. to 827,808 sqm.
The aforementioned assets were selected based on RCR’s investment criteria of maximizing dividend yield accretion through the infusion of high-quality commercial properties that complement the company’s existing portfolio of 16 premium assets.
“We are pleased to announce RCR’s plans to conduct a property-for-share swap for prime malls and offices. Our fund manager, RL Fund Management, Inc., has identified the assets that will maximize the additional value delivered to our shareholders. The planned asset infusion will diversify our predominantly office asset portfolio with the inclusion of mall assets. This is in line with RCR’s commitment to shareholders to continuously grow the company,” said Jericho P. Go, President and CEO of RCR.
Following the infusion, RCR retains its stature as the Philippine REIT with the widest geographical reach, with assets in 18 key locations. The deal also strengthens RCR’s portfolio of green-certified assets, as Giga Tower received the Leadership in Energy and Environment Design (LEED) Gold certification in the first quarter of 2022, while the Cybergate Delta 2 development obtained its Excellence in Design for Greater Efficiencies (EDGE) certification in the first quarter of 2024.
RCR posted stable financial results in the first quarter of 2024, with total unaudited revenues amounting to PHP1.43 billion. Net income for the quarter amounted to PHP1.12 billion, which translates to a net income margin of 79%.
After the infusion into RCR, Robinsons Land’s current investment portfolio includes approximately 1.4 million sqm. of leasable mall spaces, approximately 253,000 sqm. of remaining leasable office spaces, 26 hotels with a total of 4,243 room keys, and 244,000 sqm. of leasable logistics facilities.
For more information on RL Commercial REIT, visit rlcommercialreit.com.ph/
