RL Commercial REIT books P1.68-billion net income

RL Commercial REIT, Inc. (RCR) said it booked a P1.68-billion net income in 2021, surpassing expectations thanks to the company’s stable “revenue stream and operational efficiency.”

In a disclosure to the exchange on Monday, the company said the 14 buildings in its portfolio achieved high occupancy, allowing it to log P2.09 billion in revenues.

The company said it also made health and safety investments for its buildings, which include adding hybrid metal detectors with thermal scanners and infrared activated alcohol and soap dispensers.

RCR said its board of directors also approved a better-than-expected dividend yield for the year at P0.092 per outstanding common share, bringing its total declared dividends to P0.154 apiece.

The company said this brings the company’s annualized yield to 5.73%, higher than the projected 5.57% stated in its real estate investment trust (REIT) plan.

“The higher than projected dividend yield is a testament to the strength and quality of the assets of RCR,” RCR President and Chief Executive Officer Jericho P. Go said.

“The company shall continuously look into infusing assets that will support its investment criteria and contribute to the growth of RCR. RCR’s potential expansions are geared towards boosting its dividend yield,” he added.

According to RCR’s three-year investment plan filed in December, the company has an expansion pipeline that can be accessed through its sponsor firm Robinsons Land Corp. (RLC). RLC allows RCR to have “access to about 422,000 square meters (sq.m.) of gross leasable area (GLA) for acquisition.”

The company may also acquire properties from unrelated third parties.

RCR and RLC have inked a memorandum of understanding as of July 13 last year for the potential future acquisition of RLC’s Cyberscape Gamma and/or Robinsons Cybergate Center 1, which are subject to “final terms as may be agreed between the parties” and market conditions, among others. The two assets are said to have a 72,100-sq.m. GLA altogether.

With its current portfolio, RCR has an aggregate gross leasable area of 425,315 sq.m. The company said it holds the record of having a wide geographical reach across nine cities and the longest land lease tenure of up to 99 years.

RCR shares on Monday closed 4.75% or 36 centavos higher to finish at P7.94 apiece. — Keren Concepcion G. Valmonte