Asset infusions drive RCR’s outperformance in FY25
From AB Capital's The Opening Bell: Three Moves
Event
RL Commercial REIT, Inc. reported 2025 revenues rising 35% to P11.1bn, driven by sponsor asset infusions including nine malls, while occupancy held at 96%. The REIT also declared a P0.1112/share dividend, up 5% QoQ, reinforcing distribution visibility.
View
We think growth remains acquisition-led rather than organic, but execution appears disciplined. Stable occupancy despite rapid portfolio expansion suggests resilient leasing demand. In our view, diversification into malls strengthens earnings visibility, though it gradually increases sensitivity to discretionary consumption cycles.
Catalyst
Key catalyst includes further sponsor infusions i.e. we recently highlighted that the private placement by RLC pushed public float to ~44%, which gives them enough space for up to P45bn worth of potential asset injection via property-for-share swap. Risks include softer retail demand and cap rate pressure if interest rates stay elevated longer.
Action
We maintain a constructive stance on RCR given its visible pipeline and improving liquidity following PSEi inclusion. Yield remains attractive versus peers, and gradual portfolio diversification supports medium-term income growth.
Disclaimer: The information, analyses, and views contained herein is based on sources which we, AB Capital Securities, believe are reliable, but is not guaranteed by us and is not to be considered all inclusive. It is not to be construed as an offer or solicitation of an offer to sell or buy the securities herein mentioned. AB Capital Securities and its Directors and Officers and/or members of their families may have a position in the securities herein mentioned and may make purchases and/or sales of the securities from time to time in the open-market and otherwise.
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