from Keren Concepcion G. Valmonte, reporter
RL Commercial REIT, Inc. (RCR) gained one centavo on its first day on the Philippine Stock Exchange (PSE), closing the day at P 6.46 versus its quotation price of P 6.45.
RCR is that of Robinsons Land, Corp. (RLC) sponsored Real Estate Investment Trust (REIT). It is the fourth and “largest” REIT listing on the local stock exchange to date and is breaking records with the listing.
The initial public offering (IPO) brought in a total of 23.5 billion pesos, which RLC intends to use for the construction of further projects. RCR’s market capitalization stands at 64.2 billion pesos and is believed to be the highest among REITs in the country.
“The success of our IPO is a confirmation of RCR as an attractive investment and for REITs as a new facet of the Philippine financial landscape,” said RCR Chairman Frederick D. Go during the RCR listing ceremony.
RCR was among the most traded stocks on Tuesday at Pesos 499.7 million with 77.28 million issues traded.
On Tuesday, value sales on the PSE soared more than six-fold to P31.17 billion, with 4.71 billion shares changing hands, from P5 billion with 1.75 shares traded on Monday.
“Trading activity was focused on the RCR’s maiden voyage, which ended shortly before the end of its first trading session,” said Luis A. Limlingan, director of sales for Regina Capital Development Corp., in a Viber message.
RCR opened with a gap up from its offer price of P6.45 and traded for up to P6.55 each time.
“But [it] Immediately there was profit taking in the open market causing the stock to fall as low as the P6.44 but eventually to move sideways above the P6.46 area for most of the day. Eventually the stock closed at that price and was 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 in the Makati, Bonifacio Global City, Ortigas business districts, as well as Mandaluyong, Quezon City, Metro Cebu, Metro Davao, Naga and Tarlac.
According to Santos Knight Frank, it also has the highest portfolio valuation at 73.9 billion pesos as of the end of June.
RCR’s initial portfolio includes 425,315 square feet (sqm) of gross lettable space (GLA) making it its largest asset. The assets also have land leases for up to 99 years.
“Its rentable space is expected to grow with the full support of RLC, the majority owner and sponsor of RCR,” RCR said in a statement Tuesday.
Robinson’s Land is expected to pour an asset or two into its REIT entity every year. 40,000 to 100,000 m² are to be injected within the next 18 months. in RCR.
In July, the RCR and RLC entered into a letter of intent regarding the possible acquisition of Cyberscape Gamma and / or Robinson’s Cybergate Center 1. The two assets have a combined GLA of 72,100 m². this corresponds to around 17% of the original RCR portfolio.
RLC also has existing office real estate, business process outsourcing (BPO) space in various commercial centers and other projects under construction that it can bring to the REIT, subject to, among other things, market conditions and regulatory approval.
“In total, RLC’s potential infusion pipeline for RCR amounts to a total GLA of approx. 422,000 m². over time, ”said RCR.
Mr Go said RLC will “be watching the market closely”, particularly the BPO industry. He was also confident in the office market.
RCR Treasurer Kerwin Max S. Tan said the REIT list “crystallizes the value of RLC” and also allows RLC to recycle capital to develop more projects in the future.
“This RCR list only contains 65% of our office portfolio, what then needs to be done when we include our shopping malls, our other offices under RLC, our residential areas, our land and our destinations? It just shows how valuable RLC is, ”said Mr. Tan, who is also RLC’s chief financial officer.