Investing in a growing REIT

For CY2024, RL Commercial REIT, Inc. (RCR) posted a 38% surge in its net income versus same period last year. RCR reported a P6.13-billion net income (excluding the effect of the change in fair market value of investment properties) primarily driven by its massive multi-asset infusion.

For the CY2024, cash dividends per share declared by RCR amounted to P0.4001 without the special cash dividends, and P0.4261 including the P0.0260 special cash dividends. Further, RCR declared a total of P5.71-billion cash dividend, higher than 90% of its distributable income for the year.

RCR also maintained its robust financial position. For the year ending Dec. 31, 2024, RCR’s assets totaled to P114.54 billion, which includes Investment Properties at P109.43 billion, while Shareholders’ Equity is P109.41 billion and RCR remains debt-free.

Market sentiment toward RCR remains optimistic, with the company’s market capitalization standing at P103.72 billion as of March 14, 2025, based on a share price of P6.60.

The company has also delivered solid returns to its investors since IPO on Sept. 14, 2021, with a total return of approximately 23%, including both share price appreciation and total cash dividend payouts. Share price appreciation was computed at P0.15 (P6.60 share price as of March 14, 2025, less P6.45 IPO share price) while the total cash dividends to date is P1.3602.

RCR’s investment model allows even smaller investors to participate in large-scale real estate ventures. Through REITs, individuals can generate passive income and grow their financial resources.

Stable and diversified portfolio

As of Dec. 31, 2024, the average occupancy rate of the RCR assets is 96%. In total, RCR’s tenant mix is primarily BPO which is 60%, followed by Retail Affiliates at 16%. 

The office segment has an average occupancy rate of 96% and 81% of tenants are BPOs. The mall segment also has an average occupancy rate of 96% and tenancy is anchored by Retail Affiliates, which is 44% of its tenants.

Many of RCR’s assets are situated in the country’s major business districts, near schools, transportation hubs, and commercial areas to ensure high foot traffic and strong demand. The company’s portfolio also ensures convenience for businesses and consumers that strengthens strong demand for its spaces.

RCR is currently present in 18 key locations. These are Quezon City, Pasig City, Mandaluyong City, Makati City, Taguig City, Tarlac City, Cabanatuan City, Cainta in Rizal, Imus City, Sta. Rosa City, Los Baños in Laguna, Lipa City, Puerto Princesa City, Naga City, Bacolod City, Cebu City, Ormoc City, and Davao City.

The diversified portfolio of RCR in terms of asset class and geographical location mitigate the concentration risks and provides stability to the company. The demand for BPO spaces in the office segment and the strong retail demand backed by high consumer spending for the malls segment provides a good mix for RCR portfolio. Not to mention that assets are not just present in Metro Manila but also in greater Luzon, Visayas, and Mindanao.

Sustainable and future-ready

The company’s portfolio consists of buildings designed to last for decades, constructed with high-quality materials that minimize environmental impact. Many of RCR’s properties have secured certifications such as Leadership in Energy and Environmental Design (LEED) and Excellence in Design for Greater Efficiencies (EDGE) to ensure their sustainability and efficiency.

By investing in durable structures, RCR reduces the need for frequent redevelopment to reinforce its long-term sustainability goals. This approach not only strengthens RCR’s value proposition to investors but also aligns with global ESG (Environmental, Social, and Governance) standards, which are increasingly becoming a priority for institutional and retail investors alike.

As of end-2024, RCR’s office assets in Bridgetowne Destination Estate are all LEED-certified. Exxa-Zeta Towers holds LEED Silver certification, while Tera Tower and Giga Tower have earned LEED Gold certification. In Ortigas Center, Cyberscape Alpha, Cyberscape Beta and Cyberscape Gamma are all EDGE-certified. Robinsons Summit Center, Cyber Sigma and Cybergate Delta 2 are EDGE-certified as well.

RCR’s sustainability initiatives extend beyond certifications as many of its properties are equipped with advanced Heating, Ventilation, and Air Conditioning (HVAC) systems that regulate indoor air quality to ensure a comfortable and productive work environment.

The use of double-glazed windows across several properties also helps reduce energy consumption by enhancing thermal insulation. Meanwhile, rainwater harvesting systems and low-flow water fixtures contribute to cost savings and environmental conservation.

RCR has Lingkod Pinoy Centers in some of its malls. Lingkod Pinoy Centers encourages people to go to our mall as these offer a convenient one-stop shop for various government services such as but not limited to NBI clearance, driver’s license renewal, and passport renewal. The goal is to make government offices more accessible to more Filipinos and allow them to process their government transactions with ease and convenience.

The malls are also using renewable energy source whenever possible. Aside from this, RCR in general employs various energy conservation measures such as the use of LED lighting and having an efficient and well-designed buildings.

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