RCR confirms it’s possible to triple marketcap by end 2027

RL Commercial REIT [RCR 6.60, up 0.3%] [link] confirmed a report that said RCR is “aiming to triple its market capitalization to Php300 billion from the current P100 billion in three years through infusions of RLC’s offices and malls.” The report quoted RCR CFO Kerwin Tan as saying, “RL Fund Management Inc. has a three-year target to basically make RCR as big as possible.” RCR confirmed that RCR could “potentially triple its market capitalization... in the next three years.” It noted, however, that its ability and interest in doing so are subject to “the assessment of the Fund Manager of the Company”, and are also subject to “favorable market conditions.”

MB bottom-line: I love RCR’s newfound cowboy attitude toward growth. For years, they basically did nothing and said nothing, and now they’re grabbing microphones to openly speculate about tripling the size of the company as though it were just something they could do in their spare time for funsies. RCR’s parent company, Robinsons Land [RLC 12.54, up 4.3%], has the assets to get this done, but like Mr. Tan said, it will probably come down to the typical combination of “need” and “greed”. For those wondering, market capitalization (or “marketcap”) refers to the total value of the company by way of multiplying the total number of outstanding shares by the current share price. If we just magically increased RCR’s marketcap to P300 billion, that would imply a per-share price of P19.09/share, but that’s not how this kind of thing works in real life. Each property-for-share swap that RLC would use to push assets down to RCR would require RCR to issue new shares to RLC, and that dilution would (mostly) keep the share price from rising as quickly as the marketcap. But shareholders would likely see the dividend increase from any dividend-accretive additions.

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